- November 21, 2018
- Posted by: Moksha Finance
- Category: Home Loan Tax Benefits
Home Loan Tax Benefits can be quite a daunting thing to understand. For someone who is not familiar with financial terms and regulations, the topic of Home Loan and Tax Benefits can truly send them over the edge. But in India, a property is said to be the best investment and to own property you need to understand how Home Loans work.
Home loan EMI calculator is the most important thing you need to be familiar with before you get your Home Loan in Mumbai. EMI’s are the monthly installments that you have to pay towards repaying your loan. The second thing you need you to know is Tax Benefit on repaying your interest and principal amount.
The Income Tax Act has made provisions for home loan borrowers, so that they can finally fulfill their desire of having a dream of home come true. There are three sections in the Act that give you Tax Benefits On Home Loan. You should know these for reducing your tax burden. Here’s what they are.
1. Section 80C: This section states that you can claim tax benefits of up to Rs 1.5 lakh on repayment of the principal amount of your loan. In simple terms, you can reduce up to Rs. 1,50,000 from your taxable income through section 80C.
2. Section 24: This section states that you can claim tax benefits of repayment of interest on housing loan up to Rs. 2 Lakh. This limit applies for a self-occupied property and vacant property. If you are renting out your property or your property is vacant than also deduction is available of entire amount. So, you can claim the entire interest amount as a tax benefit.
3. Section 80EE: This section states that if you are a first-time buyer then you can claim an extra Rs 50,000 as tax benefits on the interest repayment in financial year. you can also claim deduction if you have fully repaid the loan.
Another thing to know about house loans is the Pradhan Mantri Awas Yojana. The PM Awas Yojana is an interest subsidy scheme that has been named as ‘Credit Linked Subsidy Scheme for Economic weaker sectiom Groups – CLSS (EWS)’. As per this new subsidy, Economic Weaker Section groups with incomes in the eligible range will get a subsidy on their home loan interest rates of three to four percent. This scheme has been devised to ensure that more and more people can avail of home loans and fulfill their dreams of owning a home of their own.
If you want to get a house loan, it is now easier than ever to get it. You can simply go online and get yours. Owning a home of your own was never this easy.