Majority of the people in India who decide to buy their own home approach a financial institution for availing home loan. Usually, people depend on the loans to get a major portion of the finance for their home and the amount is a big sum. Just like other finance transactions there is certain tax implications related to home loans. The government of India tax benefits to all who avail home loan to reduce the burden of buying their dream home. If you are a first time borrower of home loan, you need to be aware of the following fact relating to the tax benefits:
• As per the Income Tax Act of India, 1961 both the principal as well as the interest components of home loan are subject to tax exemptions. If you have taken a home loan to either buy a new home or to construct home, you can file for tax benefit under the section 24(b) of the Indian Income Tax Act.
• You must know that there are certain limitations on the tax benefits you get on your home loan. The maximum deduction you can get on the interest component of your home loan is up to 1.5 lakhs if the loan was availed on or after 1st April 1999. If you have taken a home loan, you need to buy or finish building your home within 3 years from the year in which the loan was availed to be eligible for the tax benefit.
• Under section 24(b) you can avail tax deduction on home loan even if you have borrowed funds from your relatives and friends. Whereas under section 80C of the income tax act, you cannot get tax benefit on loans borrowed from friends and relatives.
• You can avail the tax exemption on your home loan only if you continue to pay your monthly installments on a regular basis. If you fail to make you EMI payment on time, you cannot avail tax benefit on the amount you failed to pay.
• The maximum amount of tax benefit you can get on the principal component of your home cannot be more than Rs. 1, 00,000 under section 80C of the Income Tax Act.
• As per section 80C of the income tax act, the tax deduction on the principal portion of your home loan is not applicable if you have availed loan for repair, reconstruction or renewal of your home property. On the other hand, the tax deduction on interest component of home loan under section 24(b) is allowed even for the loan taken for carrying out reconstruction, renewal and repair purpose of your home.
If you are availing home loan from Indiabulls Housing Finance Ltd you would be entitled to get tax exemption to the tune of Rs. 1,50,000 (maximum amount) on the interest component of the funds you have borrowed. Also, you can get a maximum tax deduction of Rs. 1, 00,000 on the principal amount that you repay towards your home loan
• As per the Income Tax Act of India, 1961 both the principal as well as the interest components of home loan are subject to tax exemptions. If you have taken a home loan to either buy a new home or to construct home, you can file for tax benefit under the section 24(b) of the Indian Income Tax Act.
• You must know that there are certain limitations on the tax benefits you get on your home loan. The maximum deduction you can get on the interest component of your home loan is up to 1.5 lakhs if the loan was availed on or after 1st April 1999. If you have taken a home loan, you need to buy or finish building your home within 3 years from the year in which the loan was availed to be eligible for the tax benefit.
• Under section 24(b) you can avail tax deduction on home loan even if you have borrowed funds from your relatives and friends. Whereas under section 80C of the income tax act, you cannot get tax benefit on loans borrowed from friends and relatives.
• You can avail the tax exemption on your home loan only if you continue to pay your monthly installments on a regular basis. If you fail to make you EMI payment on time, you cannot avail tax benefit on the amount you failed to pay.
• The maximum amount of tax benefit you can get on the principal component of your home cannot be more than Rs. 1, 00,000 under section 80C of the Income Tax Act.
• As per section 80C of the income tax act, the tax deduction on the principal portion of your home loan is not applicable if you have availed loan for repair, reconstruction or renewal of your home property. On the other hand, the tax deduction on interest component of home loan under section 24(b) is allowed even for the loan taken for carrying out reconstruction, renewal and repair purpose of your home.
If you are availing home loan from Indiabulls Housing Finance Ltd you would be entitled to get tax exemption to the tune of Rs. 1,50,000 (maximum amount) on the interest component of the funds you have borrowed. Also, you can get a maximum tax deduction of Rs. 1, 00,000 on the principal amount that you repay towards your home loan
No comments:
Post a Comment