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Know The Tax Benefits of Taking a Home Loan

Property investment is a fifty-fifty game. To curtail the investment nervousness, the government provides multiple tax benefits and deductions. These can be availed under the Income Tax Act, of 1961. 

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If you’re planning to buy your dream house but thoughts of finance are making you tense, here is a list of tax benefits of taking a home loan. There are three broad categories for availing these benefits.

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What Tax Benefits are Available for Taking a Home Loan?

Section 80

Under Section 80, you can avail a deduction of ₹1.5 lakhs on the principal amount. However, to claim this deduction, you cannot sell the property within 5 years of possession. Sec 80C also allows a deduction of registration and stamp duty charges.

Section 24(b)

As per Section 24(b), you can claim up to Rs. 2 lakh deduction if construction is complete within five years. Otherwise, the deduction is limited to Rs. 30,000. There is no cap on the interest deduction for properties rented out as investments.

Section 80

Section 80EE offers a tax benefit for first-time homebuyers in India. It allows a deduction of up to Rs. 50,000 annually on the interest paid on their home loan. This benefit is available only if the loan amount is under Rs. 35 lakh and the property value is less than Rs. 45 lakh.

joint home loan

Taking a joint home loan with someone like a spouse who is also a co-owner can be a tax advantage. Each borrower can claim deductions for interest up to Rs 2 lakh and principal repayment up to Rs 1.5 lakh on their taxes, potentially doubling the benefit.

Royal Greens-Your Next Investment Destination

Seeking a luxurious and secure home for investment in Indore? 

Look no further than Royal Greens, a RERA-registered township in Niranjanpur. This established community offers peace of mind on the side of transparent transactions and quality living. 

Choose from 2 or 3 BHK nature-view flats and enjoy lavish amenities like a clubhouse, temple, pool, library, and ample parking. Over 200 families already call Royal Greens home. 

Experience the best of Indore living with RERA’s security and Royal Greens’ lavish lifestyle.

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