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Article / Finance / Tax Planning | Post Comments |
Here’s How Home Loan can Help You to Reduce Your Tax Liability |
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By : Nishant Vivek , New Delhi, India 15.2.2018 Phone:9716171569 Mail Now | |
A home loan helps you get finances to buy a home of your choice. The recent
home loan interest rates becoming affordable has paved the way for many
customers who could not buy their nests to opt for a home loan and fulfil the
dreams of an own home. Deduction on Principal Prepayment You can claim deduction under the Section 80C on the EMI’s principal aspect maximum up to Rs.1.5 lakhs. However, to claim the deduction, the home should not be sold within 5 years of the possession else the claimed money will get added to your income in sale’s year. Deduction for Registration Charges and Stamp Duty Other than claiming the principal repayments’ deduction, a home loan buyer can also claim the deduction for registration and stamp duty charges under the Section 80C capped at Rs.1.5 lakhs. You need not sell your housing property within the first five years of the purchase to claim the deduction else it will be added back to your income in sale’s year. Deduction for First-Time Home Buyers You can rejoice if you happen to be a first-time home buyer. Yes, extra deductions are allowed for first-time home buyers up to Rs.50,000 under the Section 80E. To claim the deduction, the home loan figure should be Rs.35 lakhs or less and property’s value should not exceed Rs.50 lakhs. Deduction for Joint Home Loan Buyers If you have availed a home loan jointly, each of the applicants can claim a deduction valuing to Rs.2 lakhs each. This could become up to Rs.1.5 lakhs each in their individual or own tax returns, and to claim this; they should be a co-owner of the house availed on loan. As a result, a joint loan availed within your family can assist you to claim larger benefits of the tax. The Bottom Line If you are eyeing to purchase a home on a home loan, you can apply for it online and not only get lower home loan interest rates, even avail tax benefits to manage it easily. |