Income Tax Deductions that can be Claimed on your Home Loan

Buying a home of one’s own is one of the biggest cherished dreams of any individual. In order to facilitate the realization of this dream, there are a number of lenders available today who provide home loans at very attractive interest rates.

Benefits of a Home Loan

There are a number of benefits of opting for a home loan according to RBI guidelines for Home Loan. For instance, it prevents you from dipping into your savings which can be used for some other purpose. Lenders these days have started providing home loans at convenient repayment tenors. This ensures that repayment of the home loan does not become a burden on the borrower.

Additional Read: PMAY Process, Eligibility And Subsidy For Existing Home Loan Customer

Apart from these, these days, there are a number of income tax benefits which can be availed using home loans, a few of which are as follows –

Benefit on the Interest

Beginning from the financial year 2018-19, income tax deductions of up to Rs. 2 lakhs can be claimed under Section 24 of the Income Tax Act. The deduction can be claimed from the year in which the construction of the property has been completed. Here the interest refers to the interest which is paid as part of the home loan instalment.

Additional Read: What are the Tax Benefits on Home Loan for FY 2018-19?

Benefit on Stamp Duty and Registration

Under Section 80C of the Income Tax Act, you can claim a deduction of Rs. 1.5 lakhs. However, this deduction can be claimed only in the year in which these charges were incurred.

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