Know more about Tax Benefits for Women Applicants: A Complete Guide

Securing a house is a milestone every individual desire. Purchasing a residence is considered a long-term investment. This dream can be backed up with a housing loan that offers substantial funds and multiple home loan tax benefits.

To encourage female applicants to take the first step towards owning a residence, lenders usually ask applicants to meet simple home loan eligibility criteria.

What is the benchmark for home loan tax benefits for women?

Women housing loan borrowers can enjoy tax benefits of up to Rs.3.5 lakh or up to Rs.5 lakh as an annual deduction. Typically, section 80C of the IT Act allows women borrowers to claim up to Rs.1.5 lakh as deductions on principal payments. Moreover, they can claim up to Rs.2 lakh under Section 24B.

The best part is that home loan tax benefit for females is pertinent to both the property owner or co-applicant. Hence, a joint home loan applicant can effectively double the tax savings and reduce the interest rate effectively.

Women can use a home loan tax benefit calculator to estimate the deductions and payments necessary to clear dues.

Benefits available on a home loan for women

• Stamp duty concessions

Women home loan borrowers are charged a lower stamp duty in several Indian states. This is an added benefit that reduces the interest outgo and initiates healthy savings.

• Longer tenor

Women applicants receive the benefit of extending the loan tenor up to 30 years. This again reduces the EMI repayment burden. Moreover, they can receive a substantial fund against simple eligibility. To evaluate the benefits in detail, women can use a home loan EMI calculator.

These are some of the benefits women home loan borrowers can gain. However, to gain the home loan tax benefit, they must practice timely payment and keep the necessary documents handy.