Buying a home of your own is a big financial task, especially if a home loan has been employed for the purpose. In such cases, you’re not only paying the principal cost of the house, you’re also paying a high amount as interest against the loan taken. To give you a gist, you pay exactly double of what you borrow if the foreclosure happens naturally - without any part-prepayments. In such circumstances, all home loan subscribers should be aware of and should make the most of income tax rebates available. Again, the said can be done only if people are aware. Hence, below are the income tax benefits for home loan subscribers which are available:- Tax benefits for first time owners: Apart from the tax benefits on interest and principal component available under 80C and 24B respectively, first time home-owners get an additional rebate of Rs 50, 000 a year. Though there are different terms which you must be aware of.
Tax benefits on interest component: As mentioned above, existing home loan subscribers can claim up to Rs 1.5 lakh as tax rebate on the principal amount paid towards home loan under section 80C of the Indian Income Tax laws. Tax benefits on principal component: In addition, housing loan subscribers can also claim up to Rs 2 lakhs as deductions under section 24B on the interest component paid every year against the loan. Read all the terms and conditions before filing your ITR. Reference Read: Maximise Your Income Tax Benefit on Home Loans
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |