Deriving maximum benefits from housing loan.
Querist :
Anonymous
(Querist) 29 July 2020
This query is : Resolved
Sir I have taken a housing loan to purchase a house and Reside in my own house in different city and live in other state due to job profile. how can i take the full benefits of interest on loan.
Dr J C Vashista
(Expert) 30 July 2020
What is actual problem / dispute for consideration and law applicable on the subject matter for obligation of experts on this platform ?
P. Venu
(Expert) 30 July 2020
Yes, the facts posted do not suggest any legal issue.
Rajendra K Goyal
(Expert) 30 July 2020
What type of benefits are you concern?
If you are living in other city, you can give the house on rent so that the EMI burden is shared.
You have to include 10 months of rent in your Income for Income Tax purpose.
Interest paid on housing loan can be deducted from Your income.
If your wife is also employed, she can claim equal benefits if loan is in joint name.
1. Section 80C
• Claim a maximum home loan tax deduction of up to Rs. 1.5 Lakh from your taxable income on the principal repayment.
• This may include stamp duty and registration charges as well but can be claimed only once.
2. Section 24
• Enjoy maximum deductions of up to Rs. 2 Lakh on the interest amount payable.
• These deductions apply only on the property whose construction is finished within 5 years. If it doesn’t finish within this time frame, you can claim only up to Rs. 30,000.
3. Section 80EE
• First-time home buyers can claim an additional Rs. 50,000 on the payable interest every financial year.
• The Home Loan amount must not be more than Rs. 35 Lakh.
• The property’s value must be within Rs. 50 Lakh.
Some Other Conditions to Note:
a. The tax exemption is applicable only when construction of the property is complete, or you purchase a ready-to-move-in house.
b. Enjoy these tax benefits every year and save significant amounts.
c. If you sell off the property within 5 years of its possession, the claimed benefits shall get reversed and added to your income.
d. You may purchase the property and let it out on rent. In that case, no maximum amount is applicable to claim as home loan tax exemption.
e. When availing the home loan, if you continue to rent another house where is presently reside, you can claim tax benefits against HRA as well.
In case of a home loan jointly, every borrower can enjoy tax benefits on joint home loan from his/her taxable income individually.
(please visit: https://www.bajajfinserv.in/tax-benefits-on-home-loan )
