Investment in real estate has always been considered safe. Because the house prices are increasing over time, buying a home or availing a home loan from reputed NBFCs at affordable interest rate can prove to be useful in the future. But purchasing a loan would lead an individual to spend a substantial amount of income towards the EMI amount.
Thus, India's Government has introduced several tax benefits for home loan property under Section 24 of the Income Tax Act. Hence, borrowers can learn about the deduction of home loan interest rate on the property.
Deduction on home loan interest payment
When an individual purchases a house, it comes with a host of tax benefits that effectively reduce his/her tax disbursement. Many government schemes like Pradhan Mantri Jan Dhan Yojana have been introduced to provide affordable housing benefits to its citizens.
Now, homeowners can claim a deduction of up to Rs.2 lakh on the home loan interest rate if the house owner or his family resides in the property. The interest portion of the EMI amount can be claimed to deduce the total income up to Rs.2 lakh tax rebate under Section 24.
Note: The tax benefits on home loan depend on some conditions, and they are:
- The primary reason for availing of a home loan should be for purchase or construction of the property.
- Also, purchase and establishment should be completed within 5 years from the end of the financial year from when a home loan is taken.
- Loan must be borrowed on or after 1st April 1999.
Moreover, some reputed NBFCs provide a competitive home loan interest rate and a host of other benefits to own your house.
Additionally Read: All you need to know about Home Loan Tax Benefit
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