


- About Us
- OUR OFFERINGS
- CALCULATORS
- RESOURCE CENTRE
- Quick Links
- NEWS CORNER
-
INVESTOR RELATIONS
- Financial Reports
- Investor Presentations
- Annual Reports
- Notices
- ESG Profile
- IEPF
- Investor Call Transcript
- Corporate Announcement
- Public Issue of NCD'S
- Qualified Institutional Placement
- Investor Relations Contact
- Familiarisation Programmes
- ISO CERTIFICATIONS
- Forms for Shareholder KYC-PAN-Nomination update
- Credit Ratings
- Statutory Advertisements
- CONTACT US
- Login

Online

India's 1st Completely Online Home Loan!
-
e-APPLY
-
e-SANCTION
-
e-DISBURSE
Start your eHome Loans Process Now!
Apply OnlineTax Benefits on Home Loans You’re Unaware Of1

- Home Loans Guide
- Jan 02, 2017
- VIEWS: 2777
Buying your first home loan comes with multiple tax benefits, some of which you might not even be aware of! These deductions not only reduce your tax outgo but also help in managing your cash flow better. Using a good home loan benefit calculator helps in determining which tax deductions are available to you as a home loan borrower.
Here are 3 sections under which you can claim tax benefits on home loans:
Deduction on interest under Section 24:
Tax benefits on home loan for payment of interest is allowed as a deduction under Section 24 of the Income Tax Act. If you are paying EMIs – a fixed payment amount made by a borrower to a lender at a specified date of each calendar month – for a home loan taken to buy a house, the interest component in the EMI can be claimed as deduction. This deduction can be claimed in the starting of the year in which the construction of the house is completed. If your house is rented, the entire interest for the year can be claimed as deduction. Additionally, it’s important to note that even if you have missed a few EMIs during a financial year, you are still eligible to claim deduction on the interest part of the EMI for the entire year.
Deduction on principal repayment under Section 80C:
The component of your EMI which goes towards the principal is eligible to be claimed under Section 80C of the Income Tax Act. A maximum of Rs. 1.5 lakh can be claimed as deduction under Section 80C. Under the EMI plan, processing fee for the sanctioned loan, prepayment charges and service fee are eligible for deductions under Section 24 of the IT Act. Note that there is no tax benefit before you get possession of the house and the loan can only be taken for purchase or construction of a new house, not repairs of an old one.
Deduction for first-time buyers under Section 80EE:
This section provides for additional deduction of Rs. 50,000 for interest on home loans. This incentive will be over and above the tax deduction of 2 lakh under Section 24 and 1.5 lakh under Section 80C. For claiming this tax deduction, you will need to provide the statement from the lender, clearly showing the amount payable and the amount paid towards interest and principal. The balance income, after the deduction, will be taxed as per the income tax slab rates. Now that you’re aware of the various tax benefits available to you, here comes the hard part! How can you determine which of these deductions will be applicable to you? Use a tax benefit calculator to help you determine the tax saving opportunities you are eligible for. A good tax saving calculator will be invaluable in helping you calculate the benefit that you can claim when buying a home. Once you determine the above, all you have to do next is to remember to claim them when you file your returns!
Related Articles:
- Home Loans Can Help You Save Tax, Here’s How!
- How to claim tax benefits on joint home loans?
- Home Loan Calculator to gain Tax Benefits
The post Tax Benefits on Home Loans You’re Unaware Of appeared first on Indiabulls home loans.

Top up home loan vs personal loan a comparison to determine the better choice for loans
Taking on a loan of any kind is a financial responsibility. It is a debt that needs to be repaid, in full, based on the tenure chosen by the borrower. Most banks, housing finance companies and non-banking finance companies offer a myriad of loans to finance the different needs of customers.
- Home Loans Guide
- Jul 23, 2019
- VIEWS: 8360

MCLR in Home Loan
The interest rate is one of the most important components of a loan, especially in the case of a high-value loan that lasts for 2 decades or more; the home loan.
- Home Loans Guide
- May 24, 2019
- VIEWS: 6098

Types of Home Loan Charges
Most people fulfil their wish of becoming homeowners by taking out a home loan. It is the easiest way to afford a property as one can pay for the house in monthly instalments.
- Home Loans Guide
- May 24, 2019
- VIEWS: 6958
No Comments
Subscribe
Most Viewed Blogs
Categories
- Home Loans Guide 125
- Home Renovation Loan Guide 3
- Home Loan Transfer Guide 14
- Home Extension Loans Guide 1
- Loan Against Property Guide 28
- Home Loan Interest Rates Guide 2
- Others Guide 8
- Home Decor & Lifestyle Guide 5
- Plot Loan Guide 3
- PMAY Guide 5
- Uncategorized Guide 1
- NRI Home Loans Guide 5
- Financial Resolutions Guide 1
- New Year Resolutions Guide 1
Archives
- Mar 2020
- Jan 2020
- Nov 2019
- Jul 2019
- Jun 2019
- May 2019
- Apr 2019
- Mar 2019
- Feb 2019
- Jan 2019
- Dec 2018
- Nov 2018
- Jul 2018
- Jun 2018
- May 2018
- Apr 2018
- Mar 2018
- Feb 2018
- Jan 2018
- Dec 2017
- Nov 2017
- Oct 2017
- Sep 2017
- Aug 2017
- Jul 2017
- Jun 2017
- May 2017
- Apr 2017
- Mar 2017
- Feb 2017
- Jan 2017
- Dec 2016
- Nov 2016
- Oct 2016
- Jun 2016
- Apr 2016
- Mar 2016
- Feb 2016
- Jan 2016
- Dec 2015
- Nov 2015
- Oct 2015
- Sep 2015
- Aug 2015
- Jul 2015
- Jun 2015