How to claim tax benefits on Home Loans

• 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