Planning to take a home loan? Get the advantage of claiming tax benefits with your very first home loan.Get multiple tax benefits from your housing loan,claim the benefits of being a borrower this season of demonetization and cash outflow.
Getting into the deduction aspect,the interest payment terms if you are paying interest as a part of EMIs or the repayment of loan that you have taken for buying your house,the interest component can be deducted on the year in which your construction of your house is completed,a maximum of two lakh can be claimed ,in case you are living in a rented house the entire interest amount can be claimed as deduction.The interest payment for the year shall result in loss under the head income from house property this can adjusted against other heads like salary while filing returns.
The principal amount can be claimed under section 80C for deduction under the income tax act.You can sumup the entire outflow of the year towards under this deduction upto 1.5 lakh.
Charges like registration fees,stamp duty fees can also be claimed for deduction in the year in which they were paid.
Pre construction interest can be added up from the year of starting the construction of the house and claim it in ive equal installments while the amount should not exceed 2 lakhs in total once you start using the house for your own residence.
Section 80EE,deduction under this section of income tax act is only valid if you have taken loan in between april1 2013 and march 31 2015,it is available to first time home loan users whose value of the house is 40 lakhs or less and the loan amount is 25 lakh or less,the total deduction amount should not exceed 1 lakh under this act,this deduction lapses in the period after 2014-15,thereore if you fulfill the conditions mentioned for 80EE,you are eligible or deduction.
That’s not about it, You score negative tax points if you sell a house within five years from the date of purchase, or, five years from the date of taking the home loan. ” As per rules, any deduction claimed under Section 80C in respect to principal repayment of housing loan, would get reversed and added to your annual taxable income in the year in which the property is sold and you will be taxed at current rates,”
Moreover,you are eligible for deduction even if it’s a loan from friends or relatives,the purpose for which it is used is important,the assesse should be able to convince the officer about the purpose of the loan.Although this is only applicable for interest payment.
You need to be both the owner and the borrower to be eligible for a tax breaker,if any one character is missing in the story you wont be able to claim deduction.
This article has been contributed by Simmi Setia, Content Writer, LegalRaasta– an online platform for a home loan, Business Loan, Personal Loan, TDS software, GST software, GST registration etc.
Launch Your Mobile App in 6 weeks. Learn More "Convert your Idea in to business".