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Know How to Avail an Additional Income Tax Deduction of Rs.3.5 Lakh on Home Loan

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By 2025, real estate sector in India is expected to contribute 13% of total GDP of the country. To live up to this expectation, various affordable housing schemes and tax benefits are on offer for prospective home buyers.

Income tax benefit on home loans can help buyers substantially reduce the income burden. The income tax act of India, 1961 has dedicated provisions for this cause, with various tax exemption clauses. These include –

  • Section 80C of ITA states that the funds used for repayment of the principal home loan amount can be exempted from income tax. The exemption is applicable for up to Rs. 1.5 Lakh every financial year. Any amount exceeding this is subject to standard taxation.
  • Section 24(b) provides a tax exemption on the interestrate payable on the total loan amount. This benefit is given for interest payments of up to Rs. 2 Lakh every financial year.
  • Section 80EEA is also dedicated to reducing the burden of interest on the borrowers. You can get an additional Rs. 1.5 Lakh on your total disposable income as the tax is exempted. Note that this tax waiver is only applicable till 31st March 2020 for properties of up to Rs. 45 Lakh.
  • In case of top up loans, an additional tax waiver Rs. 30,000 can be availed on the interest liable.

You can easily calculate the total tax waived on your home loan repayments using a home loan tax benefit calculator.

However, several other criteria need to be satisfied to avail these policies for tax saving on home loans.

  • Exemptions are only applicable if the property has already been constructed, and is utilised as a residential property.
  • If the borrower sells the property after 5 years of ownership, the tax benefits will become invalid. If the returns are already disbursed, the exemptions are reversed and added to the following year’s income.
  • In case the house is given on rent, the entire home loan interest is waived off from tax exemptions.

Ensuring you fulfil the above mentioned restrictions, you can easily apply for the returns – by yourself, or through your employer. Having the home loan interest certificate at your disposal will smoothen this process by a significant amount.

The number of home loans acquired is increasing in number, mainly due to these benefits of tax waivers, reasonable housing loan interest, and subsidised rates at which you can avail home loans via government sponsored policies.

If you are a prospective home buyer, you should make a note of these exemptions to benefit from them. Additionally, you should also follow up on pointers which can help you avail a home loan at the most beneficial terms and features.

Home loan eligibility and documentation

You can quickly calculate your home loan eligibility by checking whether you satisfy the following criteria. Note that applicants should be between 25 and 65 years of age. A CIBIL score of 750 and above can help individuals avail competitive interest rates as well as other beneficial loan terms and features.

Also, salaried applicants must have at least 3 years of working experience while self-employed individuals must showcase a business vintage of 5 years.

These are among the few things you must know before taking a home loan. Avail the tax benefits for substantial savings over the repayment tenor. Refer to lenders who provide not only attractive rates of interest but additional repayment-friendly terms and features as well.

Hi. I am Muhammad Mubeen Hassan. I am SEO Expat and Wordpress Websites Developer &  Blogger. 30 years old. I help entrepreneurs become go-to in their industry. And, I like helping the next one in line. You can follow my journey on my blog, for list Click Here If you need any post so you can email me on my this Email: mubeenh782@gmail.com  

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Realm Scans: Navigating the Uncharted Territories of Digital Discovery

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In the expansive landscape of digital exploration, there exists a realm where information becomes an adventure—Realm Scans. Beyond a mere scanning service, this digital haven is where curiosity converges with innovation, and the uncharted territories of digital discovery come to life. Join us as we embark on a journey to unravel the unique dynamics of Realm Scans, navigating through the realms where information is not just scanned but transformed into a digital odyssey.

“Digital Horizons: Exploring the Essence of Realm Scans” is not just a title; it’s an exploration into the multifaceted dimensions of a scanning service that transcends the mundane. This article is an invitation to delve into the layers of technological prowess, user-centric design, and the transformative impact that defines Realm Scans in the dynamic world of digital information.

At the core of Realm Scans lies a commitment to redefining how we interact with information. “Digital Horizons” delves into the innovative features and functionalities that make Realm Scans more than just a scanning service. It’s a digital gateway where documents become gateways to exploration, and information is a portal to new discoveries.

A standout feature is the user-centric approach that defines the Realm Scans experience. “Digital Horizons” explores how user interface design, accessibility, and intuitive navigation are seamlessly integrated to create an environment where users don’t just scan documents—they embark on a digital journey of discovery.

Realm Scans is not confined by the traditional boundaries of scanning; it is a catalyst for a digital revolution. “Digital Horizons” illustrates how Realm Scans empowers users to go beyond the expected, transforming the act of scanning into a dynamic and enriching experience that transcends conventional notions.

As we navigate through the digital horizons of Realm Scans, the article becomes a celebration of the fusion between technology and user experience. It is a recognition that in the world of digital services, there are realms where functionality meets innovation, and where information is a gateway to new digital frontiers.

“Digital Horizons: Exploring the Essence of Realm Scans” is not just an article; it’s an ode to the tech enthusiasts, the information seekers, and the digital explorers who recognize the profound impact of a scanning service that goes beyond the surface. It’s an acknowledgment that in the realms of digital discovery, Realm Scans stands as a beacon, inviting users to embrace the transformative power of information in the digital age.

As Realm Scans continues to redefine the digital scanning landscape, “Digital Horizons” invites us to appreciate the nuances of a service that transforms the ordinary into the extraordinary—an exploration where every scan is not just a document but a digital adventure waiting to be unfolded.

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