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Home Loan Tax Benefit 2024 - Check Interest Deduction, Tax Savings & Exemptions
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Anyone with a housing loan from a recognized institution can claim tax deductions.
You can get deductions up to ₹1.50 lakhs on the principal and up to ₹2 lakhs on interest.
MIs aren't tax-free, but components like principal and interest offer tax benefits.
Yes, especially for first-time homebuyers, offering deductions on interest.
Absolutely, both co-applicants can claim tax deductions on a joint home loan.
Yes, but the tax benefits on the interest paid can be claimed in five equal installments starting from the year the house is ready for possession.
Yes, tax deductions can be availed for loans taken for renovation or repair.
Yes, if you meet the criteria for both sections, you can claim benefits under each. Kotak Mahindra Bank understands the significance of homeownership and the value of tax savings. By comprehending the home loan tax benefit, one can make an informed decision ensuring a smooth financial journey to their dream home.
Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
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Owning a home is a dream for many. Kotak Mahindra Bank simplifies this journey by providing comprehensive home loan options. Furthermore, with home loan tax benefits, one can also make substantial tax savings. Let’s delve into how to save tax on your home loan this year.
What are the Tax Benefits of a Home Loan?
One can claim a significant tax saving on home loan interests and principal repayments. This not only reduces your taxable income but also eases the financial burden, turning your dream home into a smart investment.
Different Sections of the Income Tax Act that offer Home Loan tax exemption
The Income Tax Act provides several provisions for homeowners to claim exemptions:
Types of Deductions on Housing Loan
Tax benefits on home loans are classified into:
Tax Deduction on the Principal Amount
Under Section 80C, one can claim a house loan tax exemption on the principal repayment up to ₹1.5 Lakhs. This not only provides relief but makes the home loan for tax saving a practical choice.
Tax Deduction For the First-time Home Buyers
First-time homebuyers get an additional advantage with Section 80EEA. They can claim an extra tax deduction on home loan interest payments up to ₹1.5 Lakh, optimizing their tax saving on home loan.
Tax Deduction for a Joint Home Loan
When opting for a joint home loan, both the co-applicants can claim tax deductions. This approach essentially doubles the home loan tax benefit if both applicants fall under different tax brackets.
Tax Deductions on Second Home Loan
If you’re venturing into a second property with a house loan, the entire interest amount on the loan can be claimed as a deduction, offering even more avenues for home loan tax benefit.
Also Read: What is Home Loan? Home Loan Definition and Home Loan Types
Factors Affecting Tax Benefits on Home Loans
Several factors influence the tax benefits:
Expert Tips for Maximizing Tax Savings
Financial experts suggest regular monitoring of house loan interest rates, considering early or part prepayments, and understanding the impact of co-ownership for maximizing tax saving on home loan.
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