Income Tax Exemption on Housing Loan
Tax rebate on home loans means that you can benefit and save significant part of your tax liability if you have taken a home loan.
It works in following manner.Interest paid on the home loan
As per Sec 24(b) of the Income Tax Act, 1961 in India a deduction up to Rs. 150,000 can be claimed as tax exemption on housing loan. This deduction is claimed towards the total interest that we pay on the home loan towards purchase or construction of house property while computing the income from house property.
The interest payable before you acquire home or start the construction work would be deductible in five equal annual installments commencing from the year in which the house has been acquired or constructed.
In case of self- occupied property, housing loan tax benefit is allowed only for one such self – occupied property. The interest towards home loan taken for purchase, construction, repairs, renewal or reconstruction of house property is eligible for deduction under section 24(b).
Principal repayment of the home loan
As per the newly introduced Sections 80C read with section 80CCE of the Income Tax Act, 1961 the principal repayment up to Rs. 100,000 on your home loan will be allowed as a deduction from the gross total income subject to fulfillment of prescribed conditions.
Let us consider a hypothetical example.
Your taxable Income: Rs 5,50,000
Principal repayment for the same year: Rs 1,10,000 and Interest payable for the year: Rs 1,60,000
Total Deductions allowed: Rs 2,50,000 (Rs 1,50,000 towards interest payable & Rs 1,00,000 for principal repayment of the loan)
Thus, your taxable income will reduce to Rs 3,00,000 (Rs 5,50,000 – Rs 2,50,000)
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hosing loan is taken by husband and wife both are government servant in the income tax certificate shows both names first of wife and second name of husband. income tax benefit weather 50% sharing can be done by either. weather second name can take full advantage alone?
housing loan is taken by husband and wife both,but husband is a government employee and wife is house wife.The first name is of husband,will husband can get 100% deduction on the principal amount..
yes husband will get full benefit
What are the rules if one takes the house loan for a second house (if already there is one more house owned by the person but the loan for that house is cleared)? Financial advisor, please do advise…
I have a home loan in which i am as a co applicant. the emi amount is paid by me. property is on my mothers name. My mother is having no income. She is a housewife. She is not filling any form 16. Is there any facility like, My mother can give an authorisation saying that the property will belong to me in future so that I can avail the home loan benefits.
Yes you can avail
Hi… I am also facing the same problem but i didn’t get any solution. All banks are saying that u can’t get tax benifit without transferring that home on my name in place of mother’s name. So, Please tell me briefly ..how to get tax benifit if i take loan for a home that is owned by my mother but i have to take loan as a gurranter or as a co- applicant. Even SBI is not ready to make me /co- applicant for that loan. They are making me gurranter and saying that as a gurrenter u can’t get tax benifit.
So, please reply me briefly …I am in big trouble…
“You cannot take tax benefit until the property is in your name”. In other words there will be no tax benefit what may be the criteria of taking loan if the property is not in your name.
i am living in a government accommodation in delhi, my house is not in the same city,but is in NCR teritory,it has not been given out on rent. can i claim exemption on home loan under section 24 . will it be given by DDO or i will have to apply when i file my tax returns.
I and my husband have a house loan in our joint name and the total interest is above 3 lacs Rupees per annum. Are we elligible tax deduction for 1.5 Lac each or only Rs 75000 each since the upper limit is 1.5 lacs
I have house approx.recent market value 15.00 lakhs purchased through total govt. loan of Rs.4.40 lakhs during June’2000.Half of which repaid and taking IT benefit 30,000.00 for principal and 15,000.00 for interests. Now will it be lawfull to take again Rs.10.00 Lakhs house building loan to purchase house/flat for my mother (parents having no income)and at the same time may eligible to take income tax benefit total at maximum limit.
Housing loan is taken by husband and wife. both are working in central govt. departments. Are they both exempted from income tax ? or Any one of them are exempted ?
Yes both can take exemption from income tax
I and my husband have a house loan in our joint name. My husband is an Ex-army and now he is not working anywhere. I am a central government employee and the emi amount is paid by me. I want to know the interest paid by me is fully exempted in my name.
What is the treatment of Stampduty for I T Exemption whether it can be carried forward.
I get a discount of rs 100000 agaisnt purchase of house, they deduct Rs. 10000 TDS and pay me 90000 rs please sugest me this amount is futher taxable. My salary income is more than 1000000. I am waiting for your reply.
Both husband and wife are working in central govt. departments have taken a loan for purchasing a house from LIC Housing Finance Ltd. we understood that both are eligible from tax exemption. Under what rule shall we both get tax exemption ? kindly clarify how much amount of share on both prinicipal and interest shall we both get.
Is sundaram housing finance can be eligible for claiming tax exemption?
yes sundaram housing finance is also eligible for claiming tax exemption
Hi
I am staying in Rented house, I booked a apartment that has still under construction.
should have to claim both Home loan as well as HRA?
Please give me more information.
My salary Income is Rs.6 Lacs I have Hone Loan my as per certificate Rs.1.65 Lacs Interest amount and Rs.65000/- repayment,
Kindly advice for my return of Income–
Can I shown Income from House Properth -150000/- adn sec 80cce Rs.65000
Regards
Mukesg
Hi,
I have taken Housing loan during May 2011,House completed and am paying full EMI since beginnig ,however i have not occupied . am residing in rental house. In this case am i eligible for both HRA exemption and housing loan interest (Rs 1,50,000)exemption.
Please help
house property on wife name she is house wife but house loan taken by husband working in private sactor in bank loan documents borrower is husband and coborrower is wife. may husband can take tax banifit.
im also facing same problem like anil.i am already taken a housing loan from sbi. house property on wife name she is not earning member of the family. the problem is husband is garanter. and he is working in pvt company.now the bank is teling that he is not elegible to get any tax benifit. what husband can do to get a tax benifit from his salary? and we are having joint account in same bank principle and interest is debitin form that account
Two housing loans are availed for two different properties. whether interest exemption can be claimed for both the loans
Dear ,
I have a home loan for which I have got Rs 66000 interest exemption and 55000 principal amount exemtion.
Yet after this I have already paid Rs 1,50,000 as tax.
If I take 2nd home loan and the stamp duty of Rs 1,20,000 is paid. Will this help me to get tax rebate ?
Yes Or No.
Please revert.
Thanks in advance.
My contractor completed constructing my house by mid of March 2012, for which I have a realty and a subsequent housing loan, both from SBI. My contractor has applied for the occupancy certificate from the corporation, but it is unlikely to be received before 31 March 2012. Can I get the IT benefit of the interest paid portion of either or both the loans for the FY ending March 2012? (Realty loan EMIs are being paid since April 2011. Only monthly interests are served on the housing loan so far (March 2012))