Although housing loans attract a considerable EMI figure, there are ideas which can still help you save some hard-earned money. This is where we talk about the tax benefits on a home loan. Firstly, it is important to understand that not every loan comes with a tax rebate of sorts and you must only get your hands on a home loan for availing the benefits of the same.
At present, under Section 80C of the income tax module, one can save tax on the principal amount of up to 1.5 lakhs, on a yearly basis, inclusive of the registration fee and stamp duty. Moreover, Section 24b suggests that this also holds true for up to 2 lakhs, in case it is the interest paid. That said, it is important to take a note of that the rebates only hold true for completed properties.
Which Housing Loans offer Rebates?
Based on the existing scenario, tax benefits can be availed either for home renovation or even joint home loans, provided one doesn’t sell the house within at least 5 years of construction in case of the latter. In case of renovations, only a sum of 30,000 is admissible. Moreover, it is also possible to procure tax benefits on personal loans, provided the same has been used for purchasing properties, aiding in construction, or even making down payment for the concerned property.
Tax Rebate Calculations
Although one can easily use the online calculators for churning out the exact benefit amount, it is necessary to check for the perks offered by the banking institution and later compare the same with the metrics offered on the given calculator. The entire calculation only requires a few details i.e. loan amount, interest rates, yearly income, date of inception, and other 80C exemptions, if any.