Tax Benefit on Home Loan for payment of Interest is allowed as a deduction under Section of the Income Tax Act. Yes, home loan principal is part of Section 80C of the Income Tax Act. Under this section, an individual is entitled to tax deductions on the amount paid as repayment of the principal component on the housing loan. This is your deductible home mortgage interest.
Subtract the amount on line from the amount on line 13.
The owner or his family should reside on this property to avail this benefit. The same treatment is applicable if the house is vacant. However, under the new rules, you can only deduct interest on loans valued at a maximum of $ 75000. You can show the Interest on house Loan at the time of filing your IT Return. In case of electronic filing of.
However you should take care of following things. Only one house can be offered as self occupied and income of this house will be zero. Education loan interest is exempt under Sec.
Any amount of interest can be claimed.