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Most home loan borrowers remain confused when the issue of claiming tax exemptions comes into the picture. There are numerous housing loan tax benefits as per the Income Tax Act that a borrower can utilize to save tax. Detailed knowledge allows taxpayers to save substantial sums of money on tax savings and other advantages offered by home loans today.
Here is how you can do so –
- The applicant is required to key in the EPF, PPF, LIC premium and principal repayment for the housing loan. In case, you are selling your residential property before 5 years from the repayment date – exemptions claimed under Section 80C of the Income Tax Act will be added to income.
- Exemptions under Section 24(b) must be added.
- Interest deductions earned on your account under Section 80TTA and 80G needs to be added as well.
- The applicant needs to submit the ownership of his/her property.
- All the necessary documents such as the loan certificate – with a detailed division between the principal and interest components paid in installments.
- As per the income tax rules, the home loan must be in the name of the taxpayer, and he/she has to furnish the documents accordingly.
- Proof of municipal taxes paid in the last year must be furnished.
With this knowledge of the income tax in India along with how to claim home loan tax benefits India, will help a home loan borrower to save on repayment. You can also use a housing loan tax benefit calculator to calculate how much exemptions you can avail.
