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- Tax benefits on principal repayment annually up to Rs. 1.5 lakhs under Section 80C.
- Tax benefits on interest repaid annually up to Rs. 2 lakhs under Section 24B.
- Section 80EE’s tax benefits on interest repayment of up to Rs. 50,000 for a financial year for first-time homebuyers.
- Section 80EEA’s tax benefits on interest repayment of up to Rs. 1.5 lakh per financial year for first-time homebuyers.
The above-mentioned tax benefits are subject to certain terms and conditions.
Here is how you can claim tax benefits
Please refer to below pointers
- Enter the PPF, LIC premium, EPF, and principal repayment for the home loan and in case you are selling the property before 5 years from the date of repayment, you will have the deductions claimed under Section 80C added to your income again.
- Deductions under Section 24B and 80EE/ 80EEA have to be added.
- Deductions of interest earned on savings bank account under Section 80TTA and under Section 80G have to be added as well.
- Submit ownership information pertaining to the property.
Additional documents required
Below are the additional documents which might be required from applicants
- Loan document certificate which shows the division between the interest and principal amount paid in the EMIs.
- Documents that offer proof of home construction completion or purchase date have to be submitted.
- The loan should be in the name of the taxpayer and documents have to be furnished accordingly.
- Proof has to be furnished for municipal taxes paid in the year.
Also read: Tax benefits on home loan
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