Tax Benefits On Home Loan: Owning your own home is the dream of anyone’s life. People are able to buy their house after a lot of hard work. But sometimes people do not have enough capital to buy a house. But buying a house is necessary. In such a situation he takes a loan from the bank.
Banks are giving offers to take home loan. At the same time, Modi government is also giving a lot of facilities to the people to buy houses. Income tax concession is being given by the government for taking home loan to buy a house. How much tax can you save while taking a home loan to buy a house? Let us know about this.
Tax exemption is available on taking home loan
The government gives you rebate on home loan interest. If someone has taken a home loan. So he also has to pay interest on it. Home loan EMI is in two parts, first is the principal amount and second is the interest amount. Under Section 80C of Income Tax, you get a rebate of up to Rs 1.5 lakh on home loan. So through Section 80E, you get a maximum exemption of up to Rs 50,000 on paying home loan interest.
But let us tell you that you get this benefit only then. When you take a loan to build a residential property. Or take a loan to buy it. Apart from this, the general exemption on tax is given in other general savings schemes. That’s what you get.
This is the criteria for taking exemption
According to Section 80EEA of Income Tax, when a person takes a home loan to buy a house for the first time, he gets a rebate of up to Rs 1.5 lakh on the interest amount. So under Section 24 of Income Tax, you get exemption up to Rs 2 lakh. Along with this, you are given a rebate of up to Rs 50,000 on the interest charged on Section 80EE EMI.
Also read: PF or PPF, which gives more interest? Know what is the difference between the two