Income Tax advantage on Home Loan: Your fast guide on tax exemption prior to 31st March
Photo : PTI
“Government’s policies as per the new tax regime have encouraged people to invest in real estate as it is no more just a prestigious possession but also helps them save taxes on home loans. On the one hand, where the interest rates have depicted a gradual increase, the benefits in the form of tax savings have brought huge content to the consumers. However, it is equally essential to understand all the norms well before adopting the process,” said Mr. Nayan Raheja, Raheja Developers.
Mr. Sanju Bhadana, Managing Director, FOUR Group, said, “Government has always been supportive of motivating real estate investment, and the benefits of tax saving on home loans is a fine example of the same. The major benefit is on the repayment of the principal amount that allows the customers to save taxes on an annual basis. It allows consumers to save overall costs on their income, motivating them to invest in properties. Banks also allow benefits on interest rates in various cases.”
While customers save a significant area of their earnings in the form of taxes, the gratitude of the property they own likewise grows, providing them all-rounded advantages.
Home loans are just offered to individuals who are purchasing or building a home. It includes 2 parts: primary and earnings. Sections 80C and 24(B) of the Income Tax Act of 1961 permit tax benefits on these elements. These advantages can help purchasers save approximately Rs 2 lakhs, assisting them buy more residential or commercial properties.
“Taxation rebates on home loans have massively benefitted both real estate developers and buyers as the investments in the sector, especially built-in residential projects, have drastically increased. It is wise to invest in a higher amount for a longer time period to gain more benefits on taxes. Although a house loan has a cost associated with it, using the loan wisely can significantly help in minimising the cost and maximising tax savings,” said Mr. Ashwani Kumar, Pyramid Group.
Mr. Rajesh K Saraf, MD, Axiom Landbase, said “While interest rates have shown a gradual rise, consumers have been extremely satisfied with the advantages in the form of tax savings. The principal repayment, which enables the customers to save taxes annually, is the main advantage. It enables customers to save overall expenses relative to their income, encouraging them to engage in real estate. Tax breaks on mortgage loans have greatly helped both homebuyers and real estate developers as investors in the industry.”
Both the interest and the primary amount of a home loan that has actually been paid back might be crossed out by the taxpayer. Section 24 of the Income Tax Act allows a reduction for interest paid on a home loan for self-occupied property approximately an overall of Rs 2 lakh in a specific .
