A loan against property is an excellent example of a mortgage loan other than home loans, home construction loans, loans against land, etc.
Is mortgage loan interest tax deductible in India?
Both home loans and loans against properties offer tax exemptions. The Indian Government has introduced various schemes and the Income Tax Act for the benefit of every loan borrower.
Must Read : Where Can i Get a Mortgage Loan
There are a few tax exemptions that an individual can claim over their loan against property repayment. Note that such tax exemptions are only applicable over the interest paid on the specific purchase of the borrowers. The two tax exemptions an individual can claim are –
- Section 37(1) – Section 37(1) of the Income Tax Act is only for entrepreneurs or business owners. They can claim tax exemptions u/s 37(1) of the Income Tax Act if the availed mortgage loan is used to meet expenses related to a business.
- Section 24(b) – Under Section 24(B) a salaried individual can claim tax exemptions on the interest paid till up to Rs.30,000 for a financial year if the funds are utilised for home renovation. You can also avail tax benefits of up to Rs.2 lakh if you utilise the funds to purchase a property.
A borrower can check the website of their lender for further information regarding availing tax benefits on loan against property.
Make sure you refer to leading lenders for the most beneficial loan terms and features. Claim tax benefits to ease our financial obligations.
Read more at What Mortgage Loan Fees are Tax Deductible