2. You are qualified to receive tax benefits if you plan to buy a site to build a villa, bungalow, home, or any other type of building. Both the plot loan taken to buy the plot and the home loan taken to build a house on the plot qualify for the tax benefit. When requesting a loan for a plot purchase, most of us always look for tax advantages
The pre-construction interest deduction is allowed for interest payments made from the date of borrowing till March 31st before the financial year in which the construction is completed. Total interest on home loan: Rs 90,000 for FY 2018-19 and Rs 1,20,000 for FY 2019-20, totaling to Rs 2,10,000. Rs 2,10,000 is the pre-construction interest
The tax rules still allows deduction on interest paid towards loan on a rented property under section 24 (b) The new tax structure, introduced in Budget 2020, does away with 70 odd tax deductionsSections 80EE and 80EEA offer extra under-construction property tax benefits on home loan interest rates, provided the limits under Sections 24B and 80C are exhausted. Homebuyers meeting specific conditions can claim tax deductions of Rs.50,000 and Rs.1,50,000 under these sections, respectively.
The older provision of Section 80EE allowed a deduction of up to Rs 50,000 for interest paid by first-time home-buyers for loans sanctioned from a financial institution between 1 April 2016 and 31 March 2017. To further provide the benefit to the real estate sector, the government has extended the benefit for FY 2019-20.Benefits of Home Loan in Income Tax under Section 80C (xviii) A homeowner can claim a deduction of up to 1.5 lakhs under this section on repayment of the principal amount of the home loan during the year. A deduction for stamp duty and registration fee can also be claim u/s 80C (xviii) but within the overall limit of Rs 1.50 lakhs. The interest rate for a top-up home loan may be marginally higher than that of a regular home loan, but it is still much cheaper than most of the other loan options. While the lowest home loan interest rate in SBI for a new term loan is 9.15%, you can top-up the term loan at 9.55%. Getting a home loan top-up is quite easy. Deductions under Section 24 Under Section 24 of the IT Act, you can claim tax benefits of up to Rs.2 lakh. However, you must covert the plot loan to a regular home loan to avail the benefits. The process to covert a plot loan to a regular home loan is simple and can be done once the construction has been completed.
It is a straightforward process: Calculate the amount of interest you owe for the given financial year. Claim deduction for Section 24 (Up to Rs. 2 lakhs) Further, claim up to Rs. 50,000. If you are self-employed, you can directly file it with the Income Tax department. If you are a salaried individual, make sure you file it with your employer2) Lower Eligibility Criteria. 3) Lower Interest Rates* (Compared to Personal Loan with the same Credit Score) 4) Lower Processing Fees. 5) Lower Prepayment Charges. While the many benefits of Gold Loans already make them an attractive option compared to Personal Loans, there's another advantage that often goes overlooked: tax benefits.
Step 2: Submit the documents to your employer. Step 3: Calculate the deductions you can claim on your home loan. Step 4: Visit the official Income Tax website to complete the submission of your home loan tax. After following all the mentioned steps, download your tax statement for verification.Maximum Benefit Amount. Interest on home loan. Deduction under section 24 (b) of the Act. Self-occupied property– up to Rs.2,00,000. Let-out property – Actual interest paid. Interest on home loan. Additional deduction under section 80EE of the Act. Up to Rs.50,000. Interest on home loan. eQaVBJd.