Now taxpayers can avail this additional deduction on the home loan taken till 31 March 2022.
New Delhi. If you are going to buy an affordable house up to 45 lakh rupees or less, then there is a relief news for you. However, this benefit can only be taken by the first time home buyer. In fact, the discount on the interest of home loan for Affordable Housing has been increased by one more year.
The government gives an additional rebate of Rs 1.5 lakh on home loan interest. Whose period was ending on 31 March 2021. It has now been increased to 31 March 2022. That is, taxpayers can now take advantage of this additional deduction on the home loan taken till 31 March 2022.
Taxpayers will now be able to claim deduction of up to Rs 3.5 lakh. This deduction is available under section 80EEA, in which income tax benefit of up to 1.5 lakh jgh / s is paid on the interest payment of home loan. These tax benefits on a home loan are Rs. 24 (b) under section 24. Existing discounts of 2 lakhs or more are available. However, now the total tax exemption on payment of home loan interest has been Rs 3.5 lakh. Hence, taxpayer will now be able to claim deduction up to Rs 3.5 lakh every year.
Who will get full deduction?
Home buyers need to take a 90 percent loan on a residential property of Rs 45 lakh to get full exemption in tax. Home buyers will have to take this loan for 20 years, on which an interest rate of 9 percent will have to be paid. Through this, customers can end the deduction limit of Rs 3.5 lakh. Since the prevailing interest rate for affordable house is around 7 percent or less, which is about 200 basis points less than 9 percent.
Some other conditions
Under section 80EEA, any person can claim deduction of up to Rs 1.5 lakh on the interest paid on a home loan. The condition in this is that he should not have any other house property till the date of passing the loan.
The tax exemption only applies when the construction of the property is completed, or you buy a ready-made house. If you sell the property within 5 years of your occupation, the claimed profits will be refunded and Will be added to your income.
You can buy the property and rent it. In this case, no maximum amount is applicable for claiming home tax as tax exemption.
While availing a home loan, if you continue to live in another house where you currently reside, you can also claim tax benefits on HRA.
