Many of us often remain confused when it comes to the whole home loan claim income tax aspect. There are several home loan tax benefits that you can obviously avail if you already have a home loan and are paying 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 of your loan annually up to Rs. 1, 50, 00 under Section 80C. This includes amounts paid towards registration charges and stamp duty. This benefit can be obtained once construction has been completed for the home.
• Tax benefits on interest repaid through your home loan annually are available under Section 24. The maximum deduction is Rs. 2 lakh. In case the home has not been constructed within 3 years from the end of the financial year in which you took loan, only Rs. 30, 000 can be claimed as the deduction. In case the loan has been repaid prior to the home being finished, the amount aggregate eligible for deduction will be claimed in five equal instalments for 5 financial years in succession.
• Section 80EE- There are tax benefits up to Rs. 50, 000 for a financial year for first-time homebuyers subject to certain terms and conditions.