3 Types of Home Loan Tax Benefits at a Glance
If you apply for a home loan, you can get a considerable amount to buy or build your dream house.
Other than a large amount and lower home loan interest rates, it is also possible to enjoy home loan tax benefit.
Do you want to know more? Read on!
- Deductions on repayment of the principal amount
Your housing loan comprises two parts; the interest and the principal. For repaying the principal portion of the loan, you can enjoy a deduction of up to Rs.1.5 lakh. You can claim it on a self-occupied and rented property.
2. Deductions on repayment of interest amount
On repaying home loan interest rate charges, you can ask for a deduction of up to Rs.2 lakh. The construction of your home must be completed within 5 years to pocket the perk. If not, you can claim a deduction of only Rs.30,000.
3. Deductions on joint home loans
If you have applied for a joint home loan, you can claim up to Rs.2 lakh on interest amount and Rs.1.5 lakh on principal repayment. Both applicants can individually avail of this home loan tax benefit. But to do that, they both need to be the co-owner of the property. Applying for a joint loan also helps to avail of lower home loan interest rates and pay the reduced home loan EMIs.
Other than such home loan tax benefit, you can also enjoy a deduction of up to Rs.1.5 lakh on the payment of stamp duty and registration charges of a property.
Based on your eligibility and other norms, it is possible to avail an amount of up to Rs.3.5 crores from top lenders in India. You can check your eligibility using the home loan eligibility calculator on your lender’s platform for free.
