Tax Benefits of Housing Loan

02 Nov 2020

#incometaxbenefits 
As per income tax laws, an individual can claim interest paid on housing loan as a deduction from gross total income. The amount of interest which can be claimed as deduction is currently capped at Rs 3.5 lakh.

At present, for self occupied house, one can avail a tax benefit on the principal amount repaid on the home loan as well as the interest paid on it.
Under section 80C of the income tax act, you get a deduction for the principal (of the loan) repaid upto Rs.1.5 lacs a year and the interest paid is deductible upto Rs.2 lacs for annum under section 24. These deductions are allowed from the gross total income before calculation of tax, thereby reducing the total tax payable.

#Briskloans  #HomeLoans #Section24