Home loan interest benefit for income tax in 2014

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Get Every Dollar You Deserve. File Taxes From Your Home. Dependable, Experience Helpful. Years of Mortgage Expertise. Claiming tax benefits on home loan is a simple process.

Below are the steps to claim your tax deduction. Step1: Calculate the tax deduction to be claimed.

Step2: Ensure that the house is in your name or you are the co-borrower of the loan. Step3: Submit your home loan interest certificate to your employer to adjust the tax deductible at source. The only exception to that rule is if proceeds from a home loan were used for business purposes. In that case, you would deduct the interest on your business tax return.

First, the mortgage interest deduction includes that which you paid on loans to buy a home , on home equity lines of credit , and on construction loans. This deduction is also available only after you have received possession of the house. You claim tax benefit on HRA ( House Rent Allowance ) under section 10(13A) while the tax benefit on payment of interest on home loan comes under section 24(b). However there can be issues if both the sections are used together with the intent of tax evasion.

You must be both an owner and a co-borrower (in the loan ) to claim tax benefits. More Veterans Than Ever are Buying with $Down. Estimate Your Monthly Payment Today. Apart from this the principal amount paid towards the home loan also qualifies for tax benefits under Sec 80C of the Income Tax Act.

Is Tax Exemption Benefits on Home Loan Also Available to Co-Owner? There are many tax benefits to owning your own home. You can deduct mortgage interest as well as private mortgage interest.

Current income tax laws allow various tax benefits on home loans depending on the type of the house, i. At present, for a self-occupied house, one can avail a tax break on the principal amount repaid on the home loan as well as the interest paid on it. Section 80EEA and Section 24. The owner or his family should reside on this property to avail this benefit. FY) on the Home Loan interest. FY on the repayment of the home loan principal amount.

In the past, you could deduct interest even if you used your HELOC or home equity loan for non-property-related expenses, such as buying other assets or consolidating debt. Now the deduction applies exclusively to expenses related to the house. But legally you can claim tax benefit on both if you can give a valid reason for this arrangement. The reasons can be its more convenient to stay.

Introduction-Finance Minister inserted a new section 80EE relating to the additional deduction in respect of interest on loan taken for residential house property. If you are tax bracket, your post- tax cost of loan will be 6. Assessee can avail the benefits of this section in two A.