Itr Filing Tips and How You Can Save Home Loan Income Tax

A home loan or home loan granted to purchase property can help taxpayers save money every year. In fact, many taxpayers are not fully aware of the benefits of the home loan when filing tax returns – the due date of which falls on July 31 for filing ITRs for the 2021-2022 fiscal year.

Under several sections of income tax laws, a home loan or home loan can be used to qualify for the following deductions from total income:

Section 24

All homebuyers can claim a deduction of up to Rs 2 lakh under “Ownership of Home,” said Ruchika Bhagat, MD, Neeraj Bhagat & Co. In the case of rented property, it that is, interest is waived.

Section 80C

Homebuyers can claim a deduction for repayment of principal, a deduction for stamp duty and registration fees for a rented or self-occupied property under Section 80C. The total limit, however, is Rs 1.5 lakh.

Section 80EE

An additional deduction under Section 80EE is given to home buyers for a maximum of Rs 50,000. However, this only applies when the amount of the loan taken is Rs 35 lakh or less and the value of the property does not exceed Rs 50 lakh. In addition, the loan must have been sanctioned between April 1, 2016 and March 31, 2017.

Article 80EEE

Under this, first time home buyers after exhausting their limit under Section 24, can claim deductions regarding home loans taken out for affordable housing with a limit of Rs 1.50 lakh. The stamp duty of the property, however, must not exceed Rs 45 lakh under this clause. Also, a homebuyer with benefits under Section 80EE cannot claim benefits under Section 80EEA.

Deduction for solidarity real estate loan

If the loan is taken jointly and both are co-owners of the property, each loan holder can claim deduction for interest on home loan up to Rs 2 lakh each and repayment of principal under Section 80C up to Rs 1.5 lakh each in their tax returns. .

(Edited by : Ajay Vaishnav)

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