What are the Tax Benefits for a Home Loan Borrower?

1. O^^€ Q Menu ▼ What are the Tax Benefits for a Home Loan Borrower? ©March 21,2018 &Real Estate # home loan benefits, home loan exemption,home loan rebate,home loan tax benefit,housing loan interest exemption, housing loan tax benefit,housing loan tax exemption,refinance home loan, tax benefit on home loan 2018, tax exemption on home loan ., tax saving on home loan m Srishti Chandola lh Like 0 Purchasing a home is a prudent way of saving tax on the income tax and this is the prime reason why young home buyers are moving ahead towards the real estate investment. As the union Budget 2017 reintroduced section 80EE, the holding period was lowered that delighted the home buyers. But, provided a major jolt to the ones who used to claim a loss on the let-out property as the government restricted tax benefit up to 2 lakh rather than the complete amount. There are various other advantages and claims that are at times missed by the home buyers. Here are some of them- Claim tax relief on interest paid during the construction stage The home buyers can claim the tax deduction on interest paid during the construction of the house in 5 equal installments. The home buyers, however, can make the claim when receives the completion certificate. So, once construction is completed, the complete tax benefit would be annual interest plus 1 /5th of the interest paid during the construction period which is limited to Rs 2 lakh. Claim tax deduction on loan charges As per the section 2 (28A), interest is certainly defined as all the types of the service fees and the charges paid with respect to any of the type of loan. The home buyers can certainly claim a tax break on the processing fees, prepayment charges an well as another cost in relation to the home loan under the interest column. Tax benefit on missed EMI

2. A home buyer can actually claim the tax advantage on interest component of the home loan even if you have missed EMI. The payee should have a copy of the interest certificate that is issued by the lender that basically specifies the loan amount as well as complete payable in a financial year. The tax deduction, however, on the principal component won’t actually be functional here as it depends on actual repayment. Principal repayment benefit Though the holding time has somewhat been shelved to 24 months for qualifying for the long-term capital gains you certainly are claiming the principal repayment advantage and if you sold the property within 5 years of buying of home or sanctioning of the home loan, the advantage would get reversed. The complete advantage would get added to yearly buyer income. Tax breaks are for co-borrowers and co-owners Being the co-owner is not just sufficient to even when you are paying monthly installments, you have to be the co-borrower in the home loan to avail the tax deduction on the interest as well as principal component. Furthermore, if the property is owned by the spouses, wife, and husband can avail the tax deduction on similar loan. But, it is important to have the name on the loan book to avail the tax advantage as the coborrower. ^ Can Your Parking Space be Sold by the Developer? Leave a Reply Your email address will not be published. Required fields are marked * Comment Subscribe to our newsletter Want to be notified when our article is published? Enter your email address and name below to be the first to know. Send

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