Right Ways to Claim Tax Benefits on Home Loan
More than being a financial aid, Home Loans can also help you save on tax as per the Income Tax Act, 1961.
Income Tax Act: Sections Granting Home Loan Tax Benefits
Tax rebate of up to Rs.1.5 lakhs on repayment of the principal amount.
Tax rebate of up to Rs. 2 lakhs for interest paid.
Section 80 EE
Tax deduction of Rs 50,000 along with Rs 2 lakh*.
How to Get Maximum Tax Benefits on Home Loans?
Apply jointly, as both applicants get a tax rebate of Rs.1.5 lakhs on the principal amount and Rs. 2 lakhs on interest paid.
Terms and Conditions for Availing of Home Loan Tax Benefits
Property should be registered in your name
The construction should be complete
You should have all the required home loan documents