Learn About the Income Tax benefits on Home Loans
Buying a home brings with it many advantages. It gives you the joy of becoming a homeowner, comes with flexible repayment tenures lasting up to 30 years, and allows you to buy any property you like. Additionally, you can enjoy numerous Tax Benefits under various Sections of the Income Tax Act of India, 1961. If you are a prospective homebuyer wondering, “how much tax can be saved on Home Loan?” this article is for you.
You may claim home loan tax benefits under the following sections of the Income Tax Act, 1961.
Section 80C of the Income Tax Act allows you to save taxes on various investments in India. It also applies to Home Loans.
Under Section 24 (b), homeowners can enjoy tax deductions of up to INR 2 Lakh on repaying the interest component of the Housing Loan. The conditions to claim Income Tax benefits on Home Loan under this section are:
As a first-time homebuyer, you can claim an additional INR 1.5 Lakh over and above INR 2 Lakh tax benefit under section 24 (b) towards Home Loan interest payment.
You must fulfil the following conditions to enjoy tax savings on Home Loans.
You may claim tax benefits under Section 80EEA if you buy a housing unit like an apartment or a flat, and not if you purchase plots.
You can use the Home Loan EMI Calculator to compute the payable EMIs, loan eligibility and more.
While buying a home may involve several expenses, you can take respite in the fact that you can claim Home Loan Tax Benefits and reduce your costs considerably. Ensure you check all the benefits you are eligible for and utilise them to your advantage.
Download the digibank by DBS app to get started.
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.