🦌 Home Loan Benefits In Income Tax

You must be a co-applicant and a joint owner to claim tax benefits on a joint home loan. There are three types of joint home loan tax benefits that you can avail of following the Income Tax regulations:-Section 80C: A tax deduction of up to Rs. 1.5 lakhs can be claimed every year on the principal component of the housing loan until loan maturity. Let us look at these benefits. Home Loan Tax Benefit Under Section 24B. The Section 24B of the Income Tax Act deals with the Home Loan tax benefits that one can claim on the payments made towards the repayment of the interest component of a Home Loan. In case of a Home Loan availed of to buy a ready-to-move-in property, one can claim tax Taxable Income. Tax Amount. 8 lakh per annum. 3,50,000 (Housing Loan Principal +Interest) Rs 4,50,000/-. Rs 4,50,000- 2,50,000 (free) = Rs 2,00,000. 5% of 2,00,000 =Rs 10,000. Mr X has availed a home loan and is tied up with EMI installments. The housing loan EMI consists of - principal amount as Rs. 1, 50,000/- deductible under section 80C and FY 2014-15 = Rs 70,000 (April 2014 to March 2015) Step 1 : Date of home loan acquisition – July 2012. Step 2 : Date of completion of construction is – Jan 2015. Step 3 : Applicable last date of FY for Prior Period calculation – Mar 2014. Step 4 : Prior Period is the duration between July 2012 to Mar 2014. Each point that you buy generally costs 1% of the total loan and lowers your interest rate by 0.25%. For example, if you paid $300,000 for your home, each point would equal $3,000 ($300,000 × 1% The pre-construction interest deduction is allowed for interest payments made from the date of borrowing till March 31st before the financial year in which the construction is completed. Total interest on home loan: Rs 90,000 for FY 2018-19 and Rs 1,20,000 for FY 2019-20, totaling to Rs 2,10,000. Rs 2,10,000 is the pre-construction interest Deductions under Section 24 Under Section 24 of the IT Act, you can claim tax benefits of up to Rs.2 lakh. However, you must covert the plot loan to a regular home loan to avail the benefits. The process to covert a plot loan to a regular home loan is simple and can be done once the construction has been completed. Higher tax benefits: By applying jointly for a home loan, tax deduction available on home loan can be enjoyed by the co-applicants separately, provided they are co-owners of the property and each of them is contributing to the home loan repayment. a) Principal repayments are eligible for deduction under Section 80C of the Income Tax Act up to a Tax Deduction on Home Loan Principal Repayment under Section 80C (2023) The principal portion of your EMIs repaid during a year are allowed to be taken as deduction under the Section 80C of the Income tax act. Under Section 80C, you can claim a deduction of Rs 1.5 lakh against the principal repaid during the year. Here’s how you can get a tax break on your second mortgage: Section 80C: Under Section 80C, you can claim a deduction on the principal amount up to Rs. 1.5 lakh. This deduction can be claimed on many properties, regardless of whether they are self-occupied or rented out. Clause 24 (b): Under this section, you can deduct interest payments up Tax rebate on home loan - Make use of the entire house loan tax exemption u/s 80C for principal repayment up to ₹1.50 lakhs and the housing loan tax benefit for interest deduction u/s 24 (b) and u/s 80EEA up to ₹3.50 lakhs which would ensure the maximum tax rebate on home loan. Home loan interest certificate - Collect the home loan interest NlsC.

home loan benefits in income tax