By Abhishek Soni For taxpayers who have an on-going home loan, the interest paid on such loans helps them lower tax liability in the existing income tax structure. However, under the new income tax regime proposed in Budget 2020, the interest paid on housing loan is not available for deduction for self-occupied houses. A self-occupied house gives you two avenues of saving taxes which are the payment of interest and repayment of principal. You can get Rs.2 lakh deduction under section 24b of the Income-tax Act, 1961 on interest payment and Rs.1.5 lakh on principal repayment under section 80C. For interest on home loans the tax benefit is available under Section 24(b). For a maximum of two self-occupied properties taken together, you can claim upto Rs 2 lakh in a year towards interest. Apr 27, 2023, 11:28 IST. Source: Pixabay. Apart from the deduction of up to ₹1.5 lakh on principal payments, and up to ₹2 lakh on interest payments, an additional deduction of ₹50,000 is For the first time, Middle Income Group (MIG) has been included for a housing scheme in the country. First-time homeowners are eligible for a tax discount of up to ₹ 2.67 lakhs under the Pradhan Mantri Awas Yojana. #3. Personal Loans – Indirect Deductions as Per Use of the Loan. . If you have bought a house with the help of a home loan, you become eligible to get income tax deduction on interest payment up to Rs 2 lakh annually, provided the house is self-occupied. Moreover, you can also claim deduction of up to Rs 1.5 lakh on the principal repayment under Section 80C. 1) Rs.5000 per month or Rs.60000 a year. 2) The yearly rent amount minus 10% of the taxpayer’s adjusted total income. 3) 25% of the adjusted total income for a year. As already mentioned under the conditions for claiming Section 80GG, the taxpayer has to file Form 10BA to claim deduction under Section 80GG. Let us look at these benefits. Home Loan Tax Benefit Under Section 24B. The Section 24B of the Income Tax Act deals with the Home Loan tax benefits that one can claim on the payments made towards the repayment of the interest component of a Home Loan. In case of a Home Loan availed of to buy a ready-to-move-in property, one can claim tax You can claim the amount paid towards the repayment of the principal and the interest components as deductions in your income tax return. The limits on the amount deductible are governed by the applicable income tax laws.. In India, under Section 24(b), the interest paid on a home loan is eligible for deduction up to Rs 2 lakh per year. 1. Rent income claimed by me, home loan tax benefit claimed by husband. 2. Rent income claimed by husband, home loan tax benefit claimed by husband. 3. Rent income and home loan tax benefit jointly claimed. P.S I may be paying a meager tax since I worked only part of the year and so do not really need the home loan benefit.

home loan benefits in income tax