Home Loan Tax Benefits Checklist
On Principal Amount
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For Self-Occupied property - Under Section 80 C of IT Act: Actual paid or max of Rs. 1,50,000 deduction can be availed by an individual.
For Senior Citizens: limit increases to Rs. 2,00,000. - For Rented or Vacant (Vacant property will be deemed to be let out property) - Under Section 80 C of IT Act: Actual paid or max of Rs. 1,50,000 deduction can be availed. For Senior Citizens, limit increases to Rs. 2,00,000
- Second Home or Additional Property - No tax benefits
- Under Construction - No tax benefits
On Interest Amount
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For Self-Occupied property - Under Section 24 of IT Act: Actual interest paid or max upto Rs. 2,00,000 deduction, construction to be completed within 5 years. For Senior Citizens, limit increases to Rs. 3,00,000. In case construction delayed above 5 years, then tax benefit available is Rs. 30,000
Under Section 80EEA of IT Act: If loan taken between 01.04.2019 to 31.03.2021 and for affordable house upto 45 lakh, then additional tax benefit of Rs. 1,50,000 can be availed
Under Section 80EE of IT Act: Affordable house upto 50 lakh and loan taken less than 35 lakh, then additional tax benefit of 50,000 can be availed and is effective from FY 2016-17 -
For Rented or Vacant (Vacant property will be deemed to be let out property) - Under Section 24 of IT Act: You can avail exemption on actual interest paid and no maximum cap / limit on benefit
(In case of rent-out properties max benefit under house property head is restricted to Rs. 2,00,000) - Second Home or Additional Property - You can avail exemption on actual interest paid and no maximum cap / limit on benefit.
- Under Construction - Tax benefit of Rs. 200,000 if construction completed within 5 years, otherwise only Rs. 30,000 is deductible.
Home Loan Takeaways
- HRA can be claimed along with home loan tax benefit, if you stay in another rental house
- Owner & Co-borrower both can claim up to ₹ 1.5 lakh each as principal deduction
- You can also claim the stamp duty & registration fees charges under sec 80C
- If property sold within 5 yrs of possession, all benefits gets reversed & added to income