Home owners have been offered a variety of government benefits to ensure that ownership is a dream attainable to as many citizens as possible. Among the biggest benefits of owning a home is the tax deductions that accompany it.
Numerous wise investments done over the years can provide you with tax benefits. There are many tax benefits you can get on home loans, one of them is tax exemption for an extended period. Tax deduction is available under Section 80C for home loans. If you are thinking about buying a home, mortgage loans have numerous perks related to tax benefits.
In this article, you will discover how to qualify for income tax benefits on sbi home loan.
How to Get a Home Loan Let’s first understand the home loan process to get the most out of the income tax benefit.
An example of a home loan would be: In order to buy the house of your dreams, a home loan offers lenders a large amount of financial assistance. Home loan lenders are usually willing to pay as much as 75-90% of the cost of the home you buy, depending on your loan eligibility and funding norms.
You can use a home loan eligibility calculator to determine your eligibility for home loans. Following the initial down payment, the lender disburses the loan amount in parts or in full, depending upon the stage of construction of the property. Part-disbursement of the loan means that the financial institution charges interest on the amount that has been disbursed. EMI commences once the loan is fully disbursed. The repayment of principal and interest is included in the EMI.
Home loans and tax benefits A Union Minister for India recently said that all old rules of income tax rebates on home loans will be applicable till the year 2024. Below are a few housing loan benefits:
Repayment on Principal Amount Deducted We have now seen the two components of EMI in detail, i.e., principal and interest. You can benefit from claiming a tax exemption on a home loan you repaid if the property is self-occupied.
Second homes purchased with a home loan and occupied by the owner or rented out are still eligible to get housing loan tax benefit up to Rs 1.5 lakh. If you register more than once, you can even benefit from tax exemptions on stamp duty and registration fees.
Deduction for payment of interest In accordance with section 24 of the Income Tax Act, you can deduct the interest on your home loan. Home loan interest can be exempted up to Rs 2 lakh for properties that are owned by the borrower. The total tax deduction for both homes should be up to Rs 2 lakh if you own other properties.
A reduction on an affordable home Section 80EEA requires you to meet certain requirements in order to get the extra deduction of Rs 1.5 lakhs.
A stamp value of not more than Rs 45 lakh should be used Between 2019 and 2020, you will apply for a home loan Ownership of the property should be transferred to the buyer Is It Possible To Get Home Loan Income Tax Benefits? You should consult the following information after reviewing the home loan tax benefits mentioned above in order to avail of tax benefits.
You should register the property in your name. The property should have been completed. Documentation required for the home loan. Statement from the bank showing the principal and interest paid during the year. Adjust the TDS of the agreement value The amount of deductions for tax benefits. An online home loan EMI calculator can be used to calculate this amount.
A Final Word Home buyers can save significantly on their home loan due to income tax rebates and lessen their burden when it comes to paying off the cost of their home loan. As mentioned above, buying a new home even from an investment standpoint sounds like a very beneficial idea.