Buying a house is a dream for many and involves a lot financial planning. Home Loan journey can be quite eventful and confusing. Flying to your new place every day seems like an exciting way to live. But, even birds need a place to come to a nest of their own. Therefore, here i am to guide you on every step.
Funds provided to an individual/entity for construction, extension or renovation of a residential property is called a Home Loan.
Your home loan’s Principal amount, stamp duty, registration fee, or any other expenses is a part of Section 80C of the Income Tax Act. Under this, an individual is entitled to tax deduction on the amount paid as repayment of the principal component on the housing loan. In this, an amount upto Rs.1,50,000 can be claimed as tax deductions, means, you can reduce upto Rs.1, 50,000 from your taxable income, and it is available for Individual and HUFs. But, the house property should not be sold within 5 years of possession. Otherwise, the deduction claimed earlier will be added back to your income in the year of sale.
Read on me: https://taxguru.in/income-tax/housing-loan-deductions-income-tax-laws.html
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