Income tax: From 1st April 2022, central authorities goes to discontinue earnings tax profit below Section 80EEA to first time dwelling consumers. In Budget 2019, middle had introduced a further ₹1.50 lakh earnings tax profit to dwelling mortgage debtors, who purchase their first property paying stamp obligation as much as ₹45 lakh. Later in finances 2020 and 2021, this facility was prolonged for yet one more 12 months respectively. However, in response to tax and funding specialists, if a contemporary dwelling mortgage borrower will get dwelling mortgage sanction letter by thirty first March 2022 and will get disbursal in FY23, she or he would have the ability to declare this extra earnings tax exemption profit on as much as ₹1.5 lakh dwelling mortgage curiosity fee in a single monetary 12 months for total tenure of the house mortgage.
Speaking on how an earnings taxpayer nonetheless has a chance to say this profit whereas submitting earnings tax return (ITR); Mumbai-based tax and funding knowledgeable Balwant Jain mentioned, “While filing ITR from next financial year, a taxpayer will not be able to claim income tax benefit under Section 80EEA as this tax benefit ends on 31st March 2022. However, in case, a taxpayer is mulling to buy its dream home next fiscal, it still has a chance to avail this benefit of income tax exemption on up to ₹1.50 lakh home loan interest payment in single financial year.”
Highlighting the window of alternative accessible for an earnings taxpayer, Balwant Jain mentioned, “A home loan borrower can claim income tax benefit under Section 80 EEA, if it has a home loan sanctioned in between 1st April 2019 to 31st March 2022. So, if a new borrower receives home loan sanction letter by 31st March 2022 and gets disbursal in next fiscal, he or she will be eligible to claim income tax benefit on up to ₹1.50 lakh home loan interest paid in one financial year under Section 80EEA.”
Echoing with Balwant Jain’s views; Pankaj Mathpal, MD & CEO at Optima Money Managers mentioned, “This facility will be available for a home loan borrower for entire tenure of the home loan provided the borrower is a first time buyer and he or she doesn’t own any property. Most importantly, this benefit is available on under construction property’s home loan EMI repayment as well whereas under Section 24(b), a home loan borrower can claim income tax benefit on up to ₹2 lakh interest payment after getting possession of the property.”
As per the earnings tax guidelines, from 1st April 2022, a house mortgage borrower will get two earnings tax advantages below Section 24(b) and Section 80C of the Income Tax Act. Under Section 24(b), a house purchaser can declare earnings tax deduction on as much as ₹2 lakh in a single monetary 12 months on the curiosity part of its dwelling mortgage EMI. However, this profit might be claimed after getting possession of the property. Under Section 80C, debtors can avail a tax advantage of as much as ₹1.5 lakh on the principal quantity paid by means of dwelling mortgage EMI.
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