What are the Income Tax Benefits on Home loans?

Home loans

What are the Income Tax Benefits on Home loans?

Home loans is the most preferred loan by the middle and lower classes people. With the ongoing expenses, it’s very tiresome effect for the middle class people to save the money. In this context, they can’t buy the home of their own, and complete the dream of owning a house. Home loans provided a very good platform to purchase the home based on their eligibility. Home loan is the long term loan that helps the applicants to pay the amount with low EMI. It’s not possible for the home loan applicant to pay the EMI in some years or months of time period. Many people even though they have enough amount to purchase the home, they opt for taking home loan because home loan is associated with tax benefits.
Here we are discussing about the tax benefits that an applicant can avail under the income Tax Act, 1961 on purchase of home which includes the expenses on stamp duty and Registration expenses and also on repayment of home loan. Income tax benefit for home loan is comes under section 24(B), 80C and 80EE of the income tax Act, 1961.
Tax benefit under section 80EE
This benefit can be avail by the individual and its benefits is not available for any other like firm, HUF, etc. Individual can avail this if following facts are satisfied:
• If for the purchaser it is the first time purchase of home. Means the purchaser don’t have any house purchased before.
• The value of property should not be more than 40 Lakhs.
• Loan taken for purchase of home should not exceed 25 Lakhs.
• At the date, when home loans is sanctioned the candidate should not have any property on his name.
• Lender from whom the loan is taken must be from financial institutions or housing finance company.
An individual can claim this benefits in the first year if it was not sanctioned in the first year you can claim in the next year. The limit is 1 Lakh, you can’t claim more than that.
Tax benefit under section 80C
This is for investment in Residential House property. In every loan you pay both the principle and interest amount. In this section you can claim only for the principle amount. Also the amount which you need to pay as stamp duty, registration fees and miscellaneous expenses for the transfer purpose of property to the owner can also come under tax exemption. This tax benefit amount for principle and stamp duty can’t exceed more than 1Lakh 50 Thousands Rupees.
Tax benefit under section 24(b)
This is for deduction of interest on borrowed amount from property income. That is the house property which is owned and is in the occupation of the person for their own residence.
You can take an assistance of any financial advisor to get good knowledge about the home loan interest rates and its tax benefits. If you’re looking for home loan in Hyderabad contact us at info@365eloans.com or call /SMS at ‘Loan‘ to 07288882299.