Tax Saving: How much tax will be saved from home loan, how to take advantage of income tax exemption..

 
c

People are encouraged by the government to buy houses. For this, the government gives many types of tax exemptions to people in Income Tax, so that the cost of buying a house is reduced. Through this, any person can also reduce his income tax burden.

c

Rebate on home loan interest
Under Section 24 of Income Tax, the government gives a rebate of up to Rs 2 lakh on the interest paid on a home loan in a financial year. This will help you in reducing your tax burden.

Rebate on Principal Refund
If you have taken a home loan, you can also get tax exemption on returning the principal amount to the bank. You can avail exemption up to a maximum of Rs 1.50 lakh under Section 80C of Income Tax. However, the condition is that the house should not be sold within a year of getting possession. If you do this, the exemption taken earlier will also be added to your income and you will have to pay more tax.

Get a discount on house registration and stamp duty
If you have purchased a house this year, you can also claim income tax exemption on the registration and stamp duty paid for it. A maximum exemption of Rs 1.5 lakh can be availed under Section 80C of Income Tax.

xx

Joint Home Loan Exemption
If two or more people have bought a house together, then each person can get a rebate of Rs 2 lakh on home loan interest and Rs 1.5 lakh on principal repayment.
PC Social media

From around the web