Things to Follow For Availing Home Loan Tax Benefits
Did you know that along with a large amount that you can repay over a longer tenor, it is also possible to enjoy home loan tax benefit and save? Yes, that’s possible.
Depending upon the repayments for principal, interest, joint membership and stamp duty and registration charges, you can save huge.
Let’s know things to keep in mind while availing of home loan interest rates! Continue reading!
Consider these points while pocketing home loan tax perks
- Deduction for the payment of interest portion
After going through the housing loan application process, you must have taken it for buying or building a home. It should be completed 5 years from the end of the fiscal year in which you availed of the loan. The payment of interest component of the housing finance can be claimed as a deduction. It will be from total income to the tune of up to Rs.2 lakh. This facility is available under section 24.
2. Principal repayment deduction
As per section 80C, the maximum amount that you can claim for the payment of principal can’t be more than Rs.1.5 lakh. But the condition is that you need not sell off your home within 5 years of possession. If not, the claimed deduction will get added to your income in the sale’s year.
3. Deduction on payment of stamp duty and registration charges
It is possible to claim a deduction on the payment of stamp duty, and registration charges max up to Rs.1.5 lakh. The provision can only be made under section 80C, and only in the year such outlays happened.
4. Joint home loan deduction
Availing of a home loan jointly can help you get up to Rs.2 lakh each on principal part as per section 80C. The final amount claimed in individual tax returns is Rs.1.5 lakh. The only condition is that joint home loan applicants should also be co-owners of proper availed housing finance.
If you are able to consider these points and ask for deductions, you can enjoy housing loan interest charges benefits accordingly.
