Income tax Exemption up to INR 5 lakh for first time home buyers | The Income Tax Law provides for
tax deductions for interest and the principal component of a home loan under various sections, as well
as general tax deductions that a person can receive on a home loan up to 5 lakhs.
Tax deduction on principal
Under the 1.5 lakh tax deduction under section 80C income tax, the borrower is entitled to claim the deduction on repayment of the principal home loan. The situation is such that the loan should only be selected through a financial institution that is RBI compliant, or to your employer, which is a central or state government, a public or public sector Company, a university, or a cooperative company.
The same deduction will not be available until the construction of the house has started and when you sell the property within 5 years, any benefits granted to you will be added to your income and taxed.
Interest tax deduction
A deduction of Rs. 2 Lack. The same deduction will only apply after the house is completed. Interest provided during the construction phase will require 5 postage upon completion of construction.
Under section 24, under section 80 EEA, another deduction of up to 1.5 lakh on interest is allowed. This compliance has been included in the 2019 Union Budget for Affordable Housing and includes many conditions.
The bank must authorize a loan or even banking institutions or even a home finance company between April 1, 2019, and March 31, 2022. And the value of stamp duty on that property or property shall not exceed the limit of 45 lakh Indian rupees without any additional residences owned in the name of the purchaser on the authorized date. commented the tax expert.
Nowhere is it said that a mortgage loan chosen for real estate under construction is tax-deductible in accordance with Section 80 EEA or not. Section 80C. Thus, an 80EE deduction may be required if the property is under construction
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