Tax benefits on home loan that you can avail ahead of ITR filing

 

ITR filing: If you're the owner of an outstanding home loan there are tax advantages which can assist in reducing your tax liability

An unsecured home or loan to purchase an investment property could help taxpayers save money each year. In reality, a lot of taxpayers aren't aware of the benefits of home loans when they file their income tax returns, the deadline for which is July 31st to file ITRs for the fiscal year 2021-2022.

In a variety of sections of the income tax law, a home loan or a housing loan may be used to get the of the following deductions from your total income

Section 24:All homebuyers can take advantage of a deduction amounting up to 2 lakh under the heading of "House property," said Ruchika Bhagat, MD, Neeraj Bhagat & Co. If the property is an unlet-out property i.e. you can waive the cost of interest.

Section 80C: Homebuyers may claim an exemption for principal repaymentand tax deductions for registration and stamp duty costs of a let-out property or self-occupied home under Section 80C. The maximum amount is however 1.5 lakh.

Section 80EE: Additional tax deductions under Section 80EE are granted to buyers of homes to a maximum amount of Rs 50 000. But, this deduction is available only if the total amount of loan is 35 lakh or lesser and the property's worth does not exceed 50 lakh. Additionally, the loan must have been approved from April 1st, 2016 until March 31, 2017.

Section 80EEA: Under the law, new homebuyers , after having exhausted their allowance under Section 24 may take advantage of deductions on home loans for low-cost housing, with a maximum of the amount of 1.50 lakh. The stamp duty on the property must not exceed 45 lakh as per this clause. A homebuyer who is in receipt of Section 80EE benefits cannot be eligible for benefits under Section 80EEA.

A deduction for home loan that is joint

When the loans are taken out jointly and the two co-owners of the home, each holder of the loan is entitled to a deduction of home loan interest of up to Rs . 2 lakh per annum and principal repayment under Section 80C , up to 1.5 lakh in the tax return of their respective taxpayers.