1. CA Anamika Rana, Finance Content Creator says, “If you’ve gotten taken a house mortgage to buy or assemble a home, chances are you’ll be eligible for a tax deduction on the curiosity paid on your own home mortgage.
Section 24(b) of the Income Tax Act permits for a deduction of as much as Rs.2 lakh on the curiosity paid in direction of your own home mortgage in a monetary yr.
To avail of this deduction, you must just be sure you have accomplished the development or acquisition of the property earlier than claiming the deduction.
Additionally, the property must be self-occupied or set free on hire to be eligible for the deduction.
It’s additionally vital to notice that when you’ve got collectively taken a house mortgage with another person, each of you possibly can declare a deduction of as much as Rs.2 lakh every on the curiosity paid.
To declare the deduction, you must submit the related paperwork to your employer or the earnings tax division, because the case could also be. These paperwork could embody the mortgage settlement, curiosity certificates, and different related paperwork.
So, ensure that to discover this feature when you’ve got taken a house mortgage on your property.”
2. Deepak Bhati, Chartered Accountant and Co-founder of DigiWhistle says, “In 2023, buying a new home is on trend, despite various interest rate hikes by the RBI. So, if you are planning to book a new house or flat – here are some tax benefits you can avail on your home loan that many people don’t know about.
Repayment of the principal amount: The repayment of the principal amount of a home loan is eligible for a deduction of up to Rs. 1.5 lakh per annum under Section 80C.
Stamp duty and registration charges: The expenses incurred on stamp duty and registration charges for the purchase of a house are also eligible for deduction under Section 80C.
Pre-construction interest: Interest paid during the construction period of the property is eligible for a tax deduction in five equal installments starting from the year in which construction is completed.
It is important to note that these deductions are available only if the property is self-occupied.”
3. Nidhi Nagar, Finance Content Creator says, “If you have bought your first home, Here is how you can get extra tax deduction on your home loan interest.
As we all know under section 24 b we can get deduction of up to 2 lakh on home loan interest but you can also claim up to ₹1,50,000 deduction under Section 80EEA.
This section was introduced to extend the benefits allowed under Section 80EE which is 1 lakh.
80EEA is for low cost housing so your cost of house should be 45 lakhs or less than 45.
You can claim this deduction if your taken loan was sanctioned during the period 1st April 2019 and 31st March 2022.
Fir example: let’s say Mr. Sharma bought a home worth 45 lakhs in March 2020, and paying 4,00,000 interest yearly
Now he can claim a ₹200,000 deduction for home loan interest under Section 24. And as the house’s stamp value is ₹45 lakh, he is eligible for a ₹1,50,000 deduction under Section 80EEA. So Sharma is eligible for a total deduction of ₹3,50,000 under Sections 80EEA and 24..”
4. Finance Content Creator – Tarun Malhotra says, “There are several ways to save tax on home loan but one I notice people are least aware of is joint home loan, which, when claimed with a spouse or another person can increase overall tax benefits.
Firstly, interest rates on joint home loans are comparatively much lower than that of individual ones.
Additionally, all co-borrowers can claim a deduction on the principal amount and interest payment of the home loan under Section 80C upto 1.5lakh (each) and Section 24(b) upto 2 lakh (each) of the Income Tax Act, respectively.
Lastly, if the loan is taken for the purchase of an under-construction property, co-borrowers can claim a deduction on the interest paid during the construction period.
It is always advisable to seek advice from a tax expert to understand the nuances of tax savings on any typical home loan.”
5. Finance Content Creator – Adarsh Gupta says, “The real estate sector in India is one of the fastest-growing industries in the world. However, buying real estate on a home loan has become more expensive due to various factors such as government policies, inflation rates, and interest rates.
Fortunately, you can still avail of tax benefits on home loans under section 80EE of the Income Tax Act. This section offers additional tax benefits to first-time homebuyers.
As per this provision, a deduction of up to Rs. 50,000 can be claimed on the interest paid towards a home loan for first-time home buyers. To claim this deduction, the property’s value should not exceed Rs. 50 lakhs and the loan amount should not exceed Rs. 35 lakhs.
The deduction is over and above the limit of Rs. 2 lakhs available under Section 24(b) of the Income Tax Act. This tax benefit can be claimed for a maximum of 5 consecutive years, starting from the year of the loan repayment.”
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