If you have taken a home loan or are building a house, you can save tax of Rs 2.50 lakh – News India Live

Indian taxpayers get various tax benefits under the Income Tax Act of 1961. Not only are there tax exemptions on allowances and investments, but there are also provisions in the income tax rules to reduce your tax liability by taking into account some of your major expenses. It also includes benefits like home loan tax benefits and tax exemption on under-construction property. There are many clauses and conditions related to home loan and property construction. let us know.

Tax exemption on home loan interest (Section 24)
If you have taken a loan to build a house, you can claim tax exemption on the interest paid on the loan. This exemption can also be availed for the property being used for your own use, the maximum exemption that can be availed is ₹ 2 lakh per annum. However, if the property is given on rent, you get tax exemption on the entire interest.

Tax exemption on principal amount (Section 80C)
You can claim tax exemption on repayment of home loan principal amount. This exemption falls within the total exemption limit of ₹1.5 lakh annually.

Tax exemption on registration fees (Section 80C)
Registration fees paid while purchasing property also provides income tax exemption under 80C.

For first time home buyers (Section 80EE)
First time home buyers may also get additional discounts. Apart from the exemption of Rs 2 lakh available under Section 24B, you can avail an additional exemption of Rs 50,000 on your home loan interest.

Tax exemption for joint owners
If you are a joint owner of a property or have taken a joint home loan with someone as a joint borrower, both the owners can claim tax exemption for separate partnerships.

What are the conditions for tax exemption on construction of house (Tax benefit forunder-structure properties)
If you want to claim tax exemption for under-construction property, you can get tax exemption up to Rs 2 lakh on it. Interest paid in a year and up to Rs 1.5 lakh under Section 80C. This rebate on interest can be availed after the construction of the house is completed, for this the construction has to be completed within 5 years. This deduction can be claimed in 5 installments. If the house is not built within these 5 years, you will get a rebate of only Rs 30,000 on interest payment.