What are the loans that can provide you tax benefit?

tax benefits

What are the loans that can provide you tax benefit?

Home Loans

Buying a home only with your savings is a somewhat impossible task. The people who born royal they can afford to buy a home, but for middle-class people, they need to adjust everything from their salary. Home loan is the best option for them to pay their savings as an initial payment and then cover the remaining amount in their EMI.

Owning a home in this expensive world is a dream for many middle-class people. Home loans come with tax benefits

How do you benefit?

The amount which you repay for the loan is tax exempted under Section 80C of the Income Tax Act. Also deduction for the amount you paid as interest on the home loan. Limit for maximum deduction up to 2 Lakhs based on the property you own. If you’re looking the same offer for a second owning a home that is not applicable. Only one house can be counted under the self-occupied property. All others are considered a rented out. In case if you have co-applicant for your loan both can claim for tax deduction up to 2 lakhs each. In case the property which is considered as rented out the interest for which you paid can be considered for deduction under section 24B of the Income Tax Act, that is also limited to 2 Lakhs.

Education Loans

Education loans provide an opportunity for the poor students pursue higher studies in India or abroad and develop the nation. These loans must be taken from the scheduled or financial institutions for availing the tax benefits.

An education loan can be applied for self, blood relation like children or spouse. The legal guardian of students can apply for this loan and can claim the deduction on the interest they are paying for that loan amount.

How do you benefit?

Under Section 80Eof the Income Tax Act, the amount which the guardian of the student will get tax deduction only on the interest they are paying for the loan, not for the principal amount. Also, there is no max limit fixed for interest repayment.
The maximum tenure to avail the tax benefits is 8 years, whichever is applicable after that it’s not valid.

Personal Loans

Many applicants don’t know about personal loans also come with the tax benefit and hence they don’t adapt to take the personal loan and miss out the opportunity to get tax benefited.

How do you benefit?

You can benefit with a personal loan if you take the personal loan for home renovation or to pay the down payment of your home loan. For home renovation or repairs, you can claim the tax deduction benefits. You can claim up to 2 lakhs deduction on interest paid for your personal loan.

If you’re not aware of the various tax benefits associated with different loans. You can contact us with our financial adviser is always ready to help you at no cost. Contact us at info@365eloans.com. We are expert in sanctioning loan of the applicant by a smart procedure to get accepted your application.
Madhu Babu