Home Loans and Tax Benefits

Housing Property

Home is the place where one returns after a hard day's work and relaxes and shares his precious moments with his family. Therefore, acquiring a house probably is one of the most cherished dream of most of us.

An investment in house property may not look a wise decision in the short run as one can get a similar property on rent at a much lower cost than the cost of the capital required to buy the house property. But, in the long run with the saving in rent or rental income combined with capital appreciation of the property, it turns out a very good investment.

Home Loans

Purchasing a house property is probably one of the major buying decision one takes in his life. However, with the sky rocketing prices of housing properties, it is generally not possible for most people to purchase a house property from their own savings/resources. Therefore, finance from outside sources is required for acquiring a house property. Unlike in the past, nowadays almost all banks and other financial institutions offer home loans at competitive rates and easier terms. A request on the internet or a phone call to a bank or financial institution shall result in their representative contacting you to know your actual needs and to render the desired help.

Home Loans and Tax Benefits

Home Loans also help in reducing the tax liability. Currently undernoted tax reliefs are available on Home Loans:

  • Repayment of housing loan upto Rs. 1,50,000/- (inclusive of other investment u/s 80C) qualifies for relief under section 80C of the Income Tax Act.
  • A further rebate, subject to certain conditions, in the form of deduction on accrued interest is available. The rebate shall be upto Rs. 2,00,000/- (Rs. 1,50,000/- upto 31.03.2015) per annum under Section 24 of the Income Tax Act. For details please visit this page.

Please Click Here to know more about Home / Housing Loans.

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The visitors may visit the web site of Income Tax Department for resolving their doubts or for clarifications.