A. Under section 80 EE: Claim benefits up to Rs 50,000 deducted on Interest paid in the financial year subject to following eligibility guidelines. • For the 1st house, only
• The loan availed within Rs 35 lakhs
• Value of the house must be within Rs 50 lakhs
• Not eligible for commercial property
• Only individual taxpayers can claim • If the borrower stays in a rented flat can also claim the deductions.
B. Under section 24 of the income tax act: Claim benefits maximum up to Rs 2,00,000 deducted on Interest paid in the financial year
• The loan should be taken to purchase, construction or reconstruction of the home
• Construction must be completed within 5 years from the date of the loan availed. If not completed within 5 years, only Rs 30,000 deduction is allowed
• Must be self-occupied, if the home is not self-occupied, there has been no maximum limit cap is prescribed. Also if the home is not self-occupied for any genuine reason owing to the JOB, business place shifted and stays in any other places then the tax deduction allowed shall be Rs 2, 00,000 lakhs only under this section.
C. Under section 80C: Claim benefits maximum up to Rs 1,50,000 lakhs deducted on amount paid towards the principal of the loan
• Stamp duty and registration charges also eligible to claim up to Rs 1,50,000 under this section
• Stamp duty charges can only be claimed in the same year in which year the home is registered.
• A loan taken by an individual/HUF is allowed as tax deduction under this section.
• Under construction property is not eligible to claim under this section i.e construction work must be completed.
• The house should not be sold within 5 years of possession
Know the home loan income tax slabs
A. Under section 80 EE: Claim benefits up to Rs 50,000 deducted on Interest paid in the financial year subject to following eligibility guidelines. • For t