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