What tax benefits I can get in case of home loan

343 votes

The amount paid as Repayment of Principal Amount of Home Loan by an Individual/HUF is allowed as tax deduction under Section 80C of the Income Tax Act. The maximum tax deduction allowed under Section 80C is Rs. 1,50,000. (Increased from 1 Lakh to Rs. 1.5 Lakh in Budget 2014).

This tax deduction under Section 80C is available on payment basis irrespective of the year for which the payment has been made. The Amount paid as Stamp Duty & Registration Fee is also allowed as tax deduction under Section 80C even if the Assessee has not taken Loan.

However, tax benefit of home loan under this section for repayment of principal part of the home loan is allowed only after the construction is complete and the completion certificate has been awarded. No deduction would be allowed under this section for repayment of principal for those years during which the property was under construction.

LawRato LawRato

797 votes

One can avail the the tax benefits as the benefits being divided between the co applicants in case of joint loan, the division takes place as per the share of property, the very first condition is the house property must be bought by the individuals jointly for further details see section 80c and section 24 of the income tax regulations

LawRato LawRato