Is it worth taking a home loan for tax benefits?

Let us tell you that in the budget, new tax slabs have been announced for income taxpayers. However, it is still kept optional i.e. taxpayers can decide their tax liability even under the current tax regime. Under the current tax regime, if the annual income of a salaried income taxpayer is more than Rs 2.5 lakh, then it comes under the purview of income tax. However, income up to Rs 5 lakh can be tax-free through rebate benefits. 

The Income Tax Act allows individual taxpayers and companies to avail of tax exemptions in many ways. In these, through home loans, you can save tax under many sections.

-Rebate under section 80C on repayment of the principal amount.

On Repayment of the principal amount of the home loan can be claimed for tax exemption of up to Rs 1.5 lakh under Section-80C of the Income Tax Act.

-Home loan interest will get a discount of up to Rs 2 lakh.

Interest on home loans has been kept in two categories namely interest before completion of construction and interest after completion of construction. Tax deduction up to Rs 2 lakh is available under Section-24B for the interest paid after the construction is completed. This exemption can be claimed from the year of completion of the construction of the house.

-The benefit of Section-80EEA will be available till 31 March 2021.

The value of the property should be up to Rs 45 lakhs to be eligible for tax exemption under Section-80EEA of the Income Tax Act.

This benefit can only be availed by a first-time homebuyer. In Budget 2020, its benefit has been extended again for one year. Now under this, the benefit of tax exemption will be available till 31 March 2021. You can claim tax exemption on stamp duty, registration charges, and other expenses incurred while buying the property. For this, there is a limit of up to Rs 1.5 lakh under Section-80C.

With our company GRD India financial services Pvt. Ltd. We are offering home loans at very low interest rates as per the bank's norms. You are getting a home loan on tax exemption from the bank in which you are interested. We make efforts for our clients in providing the best loan price.

Please visit our site to get extra benefits in services and the cheapest loan interest rate- https://www.grdindia.in