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20 APRIL, 2022
As a responsible citizen, you must pay taxes on time and contribute to the development of the country. Your taxability is based on the income you earn after deducting exemptions. Your tax payable is based on a certain percentage of your income and can eat away a significant part of your monthly salary. To avoid this, the government provides tax deductions and exemptions to help you legally save taxes. Home loan repayment is one of the many ways through which you can save taxes. You can claim tax deductions on the amount you repay as the principal and interest component of the loan. However, it is imperative to know the amount of tax you can save with home loan. Unless you know your taxability, it could be difficult to plan your taxes and finances.
A home loan tax benefit calculator can help you determine your taxability and tax savings instantly. Here is all you need to know about a home loan tax benefit calculator.
What are the tax benefits on home loans?
You can avail tax deductions on your income and reduce your taxability by repaying the home loan.
You can claim a tax deduction of up to Rs. 1.5 lakh on the home loan principal amount under section 80 C of the Income Tax Act, 1961. This deduction amount may include the registration charges and stamp duty value.
You can also claim a tax benefit on the amount repaid for the interest component of the home loan. This deduction is available for a maximum limit of Rs. 2 lakh under section 24 (b).
What is a tax benefit calculator?
Kotak’s tax benefits calculator is an online computation tool that helps calculate the tax benefit available on home loan repayment. Through this calculator, you can find your tax savings by claiming deductions and benefits. Once you enter the relevant values in the home loan tax benefit calculator, you can get the estimated values of tax before home loan, tax after home loan and savings by the home loan.
Steps to use the home loan tax benefit calculator
You can use the sliders or input the values in the space provided. Once you provide the details, you get results instantly.
Kotak’s tax saving calculator is an automated tool that saves you from doing your complicated calculations manually. It weighs in all the elements of a home loan to give you accurate figures. The calculator is available for free on the Kotak Mahindra website, and you can use it to make an informed decision.
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