Housing loan interest exemption

Apply Online Or Call Us Today! Find Out How Much You Can Afford. Loan Experts Can Help! Mortgage Refinance Reviews. While a housing loan can help you get a house for yourself, it can also turn out to an expensive affair.

But the various tax benefits that come with such a loan help you save money every year.

Take a look at how you can make the most of these benefits. This new tax deduction benefit is applicable under new section 80EEA for the home loan interest rate payments. The amount of interest which can be claimed as deduction is currently capped at Rs 3. The tax laws allow you to avail certain benefits with respect to respect home loans. The benefits are available under Section 24(b) for interest paid and under Section 80C for the principal repayment, subject to certain conditions.

Couples usually opt for a joint home loan, as this can enhance their home loan eligibility. These home loan tax benefits are available over and above the existing exemption of Rs. A certificate from the bank about the interest calculation is require to claim the benefit.

Lakh under Section 24(b). Deductions under Section are offered on accrual basis – interest is calculated for each year separately and the rebate can be claimed even if no actual payment is made. It works in following manner. A person who has contracted a housing loan , which is secured by a mortgage or fixed charge on immoveable property and which is used exclusively for the purchase or construction of his house, may claim a relief in respect of the interest paid on the loan.

Interest Reliefs on secured housing loan. You are eligible to claim a tax deduction against annual value of a house property in respect of the interest paid by you on a home loan taken to purchase the land and construct a property thereon. The person who is availing the home loan can postpone the deduction of the interest amount paid during the pre-construction phase.

Aiming to boost the affordable housing deman Finance Minister Nirmala Sitharaman on Saturday proposed to extend the date of availing an additional Rs 1. This is in addition to the existing exemption of ₹ 1. In total, this year you can claim a deduction of ₹ 2. If you are living in a house on rent and servicing home loan on another property - even if. In India, the government promotes housing scheme to its citizen in form of a low- interest home loan and through various other tax benefits. In this article, we will cover tax benefit of home loan and deduction under section 80EE. Repayment of a home loan through EMI contains components: Principle.

If you are paying EMI for the housing loan , it has two components – interest payment and principal repayment. Get lowest interest rates and fulfill the dream of owning your dream home. There is an option to save tax when are you repaying your loan.

People who have taken loans are entitled to deductions under Section 2 Section 80C, and Section 80EE.

Tax benefits are available both on the repayment of principal and interest. Most people make their dream of owning a house come true. You will be eligible to claim both the interest and principal components of your home loan during the year. So deduction will be available for: 1.