Claim home loan tax exemption
There are several home loan tax benefits that you can avail if you are making repayment at the current home loan interest rates.
There are home loan tax benefit calculators that you can use to work out how you can save tax on home loans. The key home loan tax benefits are the following.
- 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