Housing loan interest rate tax exemption

The amount of interest which can be claimed as deduction is currently capped at Rs 3. While a housing loan can help you get a house for yourself, it can also turn out to an expensive affair. But the various tax benefits that come with such a loan help you save money every year. Take a look at how you can make the most of these benefits.

While most tax breaks are not available in the new tax regime, tax break on interest paid on housing loan for rental property can still be claimed.

Tax benefit on interest payment. You can claim deduction for interest payable on a loan , taken for purchase, construction, repair, or renovation of any property, whether commercial or residential, under Section 24(b). This deduction on interest payment is available, for any residential or commercial property owned by you. How Can You Calculate Tax Benefits on Home Loan? Use the Bajaj Finserv’s Income Tax Calculator to compute the tax benefits without any hassle.

It is an online tool which instantly calculates the amount based on certain home loan details. Some of those include home loan amount, rate of interest, existing tax deductions, gross annual salary, etc.

How to claim tax rebate on home loan? Can I get tax exemption EMI of home loan? How does a home loan give tax benefit? What are the tax benefits for home loan? Full Article – Section 80EE Income Tax Benefit on Home Loan Interest.

Popular Search – home loan tax exemption. Especially for salaried folks, in the higher tax bracket, living in metros where the rent is too high, taking home loan and getting tax exemption on the same appears more attractive. This condition is applicable for self-occupied for which construction is completed within years from the end of the financial year in which loan is taken.

One can avail tax benefits for the stamp duty and registration fee on the property. These are some home loan interest tax exemptions for under Construction properties. If you want to apply for a Home Construction Loan , this is the best way to get it approved. In case the house is not let out, there is no maximum limit on the tax benefit for interest payment. There are many more aspects about home loan tax benefits that you must be aware of.

Lakhs (Rs. 0000). You will be eligible to claim both the interest and principal components of your home loan during the year. So deduction will be available for: 1.

Repayment of principal amount 2. As per Section of the Income Tax Act, home loan borrowers individually can claim tax benefit of upto Rs. FY) on the Home Loan interest. Claiming ratio of tax exemptions It may also happen that you may be a joint owner, as well as a co-borrower but are not servicing the home loan. In such a situation, you cannot claim the tax benefits on the home loan , as the tax benefits are available with respect to the amounts paid by you. The new tax deduction benefit will help a taxpayer in saving a lot of money at the longer run.

If you are paying EMI for the housing loan , it has two components – interest payment and principal repayment. Income Tax exemption benefit on Housing Loan Interest – Frequently Asked Questions Is rental income from sub-letting chargeable to tax under the head “Income from house property”? Rental income in the hands of owner is charged to tax under the head “Income from house property”.