Government is allowing so many tax benefits on Home Loan which applicants can avail easily with an aim to enhance the housing property investment. Such tax benefits on Home Loan helps applicants to reduce their financial tension by providing tax relief which is also a kind of financial relief. It brings a great opportunity for the applicants to save money and utilize it for another purpose.
Here is the Tax Benefits on Home Loan:
According to the section 80C, Rs.1, 50,000/- is the maximum deduction limit for the principal loan amount including another tax saving investments. This deduction is not applied for the time duration in which property was under construction but it is applied for the completed property construction. Along with that, people who invest on under construction project with less value than the basis value need to pay the service tax to obtain the property.
Applicant who had taken Home Loan to buy new property or for the construction are eligible for deduction of upto Rs.2,00,000/- for interest amount paid in that case if the construction was completed under the end of the financial year in which loan was obtained. Well, the benefit on Interest amount by taking Home Loan will be reduce from Rs.2, 00,000/- to Rs.30, 000/- if the construction was for completed within the end of the financial year the loan is assumed.
In case of joint Home Loan which means that if you or your spouse apply for Home Loan, then you both are applicable for claim for deduction in Income Tax separately. Income Tax deduction is the beneficial for an applicant and his/her wife/husband if they avail Home Loan. According to the Section 80C, Rs.3 Lakhs deduction against principal repayment will be joined limit and Rs. 4 Lakhs deductions against Interest Payments under the section 24(B).