It makes sense to buy a new apartment with a spouse. In this situation, the deduction of two lakh rupees will be available on the amount of interest both of you pay.
New Delhi: To promote the housing sector, Finance Minister Nirmala Sitharaman has extended tax exemption on affordable houses for one year. The deduction available for the purchase of such houses has also been extended till March next year. Here we are talking about 5 such things about home loan incentives that you must know:
1. Even deduction is available for loans taken from company, friends and private lenders. However, it is available only for interest, not for the principal amount. For this, you have to take a certificate from the lender.
2. Booking of under-construction apartments is sometimes cheaper. Income tax laws allow you to claim the total interest paid during the period before delivery. It can be claimed as deduction in five equal installments. It starts with the financial year in which the construction is completed or you get your apartment. It is absolutely true that you will be able to claim a maximum of Rs 2 lakh as deduction in the case of self-occupied property even further. Similarly, deduction of additional 1.5 lakh rupees will also be available on the purchase of the first house.
3. It is prudent to buy a new apartment with spouse. In this situation, the deduction of two lakh rupees will be available on the amount of interest both of you pay. If the son / daughter work and the bank is ready to divide the loan into three parts, then deduction of Rs 2 lakh will be available to all three.
4. No notional rent will be added to taxable income for second self-occupied house property. This way, if you do not get a tenant, then you can keep it as a self-occupancy. Remember that this discount is only available for two houses. Third house not given on rent will be taxed according to its ‘deemed value’. In other words, there will be a tax calculation on the estimated market rent.
5. The total loss or loss from house property which can be adjusted with any other income (salary, other source), the limit has been kept at Rs 2 lakh. Apart from this, if you are not able to set off the interest of Rs 2 lakh with other income items, then you can carry forward surplus interest for the next eight years.
