Home loans are tricky. The process of obtaining one can be tiresome, and paying off the instalments can last for years. Yet, home loans have their advantages. Especially when you have more than one. Contrary to popular belief, you can take more than one loan and can be eligible for tax benefits from them too.
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[Right Way] Regarding Different types of income tax exemptions on home loans.
- Post Name :- Home Loan Benefits
- Post Category :- Banking
- Portal :- Cutresults
- Post Date :- 04/12/2020
Home Loan Benefits
- Under Section 80C, you can claim deduction upto ₹ 1.50 Lakh for the principal repayment done in the financial year.
- Under Section 24B, you can claim deduction for upto ₹ 2 Lakh for the accrual and payment of interest on home loan.
- Under Section 80EEA, you can claim deduction for upto ₹ 1.50 Lakh for the interest payment of home loan availed during the financial year.
- Under Section 80EE, you can claim deduction of up to ₹ 50,000 for the interest payment of home loan, if the loan is availed during the financial year 2016-17.
- In case of joint home loan, each borrower can claim deduction of principal repayment (section 80C) and interest payment (section 24b) if they are also the co-owners of the property.
Self-occupied houses
The tax benefits accrued for a home loan outlined under Section 24B of the Income Tax Act specifies that for a self-occupied house the deduction allowed on payment of interest is capped at Rs 2 lakhs per year. In 2019, the government decreed that you could now claim your second house as self-occupied and avail of tax advantages. However, the interest claimed remained at a cap of Rs 2 lakhs.
Houses to rent
If you have more than two houses bought on multiple home loans that you are planning to let out, you are still eligible to claim back the municipal taxes paid for these properties along with interest paid on these loans.
