Top Home Loan Tax Benefits You Need To Know About

Besides getting a significant amount to fund the home of your dream, a home loan in India facility provides you with much more.

Yes, you can also pocket home loan tax benefits on repayments and more.

Let’s know about home loan tax benefits in this quick post!

Home loan tax benefits at a glance

Deductions for interest paid on home loans

You must take a home loan in India to complete the buying or construction of a new home within the 5 years from the end of the fiscal year the loan was taken. Your home loan EMI has two parts, the interest as well as the principal part. You can claim the interest portion of the EMI to be deducted from your total income. The maximum amount is Rs.2 lakh as per section 24. It is self-owned property with no upper limit for let out ones.

Deductions on principal payment

You can also claim the principal part of the EMI paid as a deduction under section 80C. The maximum amount that can be claimed is Rs.1.5 lakh. You must not sell your property within 5 years of possession to claim this deduction.

Deductions for stamp duty and registration charges

A deduction for stamp duty and registration charges can also be pocketed as home loan tax benefit under section 80C with a maximum amount of Rs.1.5 lakh.

Deductions on a joint home loan

A jointly taken loan can also let you enjoy home loan tax benefits. Both applicants can enjoy a deduction of up to Rs.2 lakh in their individual ITRs. But, they should also be co-owners of the home availed a housing loan on.

You are now aware of the different types of home loan tax benefits that you can pocket. Based on your repayment and other aspects, you can go ahead and claim it accordingly.