5 Facts On Home Loan Tax Benefits
Posted by rupee on Thursday, September 13, 2012 Under: Home Loans
Buying a home is one of the biggest decisions of one’s life. Nowadays, more and more people are heading towards lending institutions to buy a home loan. The money which is involved in home loan is quite a huge sum. You can find lots of housing finance options in the market such as ING Vysya home loan, Axis Bank home loan, SBI home loan, Kotak Mahindra Bank home loan, etc. You can also get tax benefits on home loan, which in turns help in decreasing the burden of buying a house in India. Let's have a look on some of the vital facts about tax benefits-
(1) Both interest and principal components of housing loan give tax benefits. If a person has applied for a loan for buying a house or for doing construction, can get these deductions under the section 24(b) of the Income Tax Act.
(2) The deduction on interest component on housing loan is available up to the amount of Rs 1.5 lakh, provided the loan is taken by the person on or after April 1, 1999. Moreover, it is also required that purchasing or construction should be completed within the tenure of three years from the end of the fiscal year in which the loan was actually taken.
(3) All these tax deductions will be available only if you will continue to make repayment for the loan. If the borrower will fail in making EMI payment on time then he will not be able to get tax benefits.
(4) If a person has bought a house or sold it within the same year or before the period of three years then he would be needed to pay short term capital gains tax.
(5) Only a person who has taken a housing loan will be eligible to get tax deductions. If there are co-borrowers in housing loan then deduction will be limited to the extent of the loan which they prepay.
In : Home Loans
Tags: home loan home loan tax benefits
