Tax efficiency 101: How to maximise income tax benefits on home loans

Tax deduction for first-time homebuyers

Under the aged taxation regime, first-time homebuyers opting for a location indebtedness tin payment from taxation deductions to trim their taxation burden. According to Pramod Kathuria, Founder and CEO of Easiloan, nether Section 80EEA of the Income Tax Act 1961, they tin assertion an further deduction of up to ₹1.5 lakh connected the involvement paid towards home loans. This deduction exceeds the existing deductions allowed nether Section 24(b) and Section 80EE for location indebtedness interest.

Additionally, Kunal Varma, CEO and Co-founder astatine Freo, stated that first-time location buyers could assertion an other deduction of ₹50,000 connected involvement paid nether Section 80EE, provided the indebtedness magnitude is little than ₹35 lakh, and the spot worth does not transcend ₹50 lakh.

Also Read | Top-up location loans: Tenure, involvement rate, and different things to support successful caput erstwhile applying

Home indebtedness for women borrowers

Women borrowers usually get little involvement rates connected location loans, which tin greatly trim the full borrowing cost. Furthermore, successful immoderate states, properties registered successful a woman's sanction whitethorn person little stamp work rates, starring to further taxation savings, Kunal Varma noted.

Also Read | How to cipher income taxation benefits connected location indebtedness EMIs — explained

How bash we usage these taxation deductions to the fullest?

To maximise taxation benefits, borrowers should guarantee they support timely and close documentation of their payments, see making prepayments connected their loans to trim the full involvement outlay, and question proposal from taxation professionals to program their deductions crossed assorted fiscal instruments effectively.

Easiloan Founder and CEO Pramod Kathuria has suggested the pursuing measures to maximise taxation benefits:

1)Ensure that the residential spot is registered successful your name.

2)If you person a associated location loan, guarantee you are listed arsenic a co-owner of the house.

3)Calculate the full magnitude eligible for taxation deduction.

4)Provide the involvement certificate to your leader for TDS adjustment.

5)If you miss this step, record your income taxation returns accordingly.

Home indebtedness involvement rates alteration wide depending connected the applicant’s recognition illustration and the lenders’ recognition policies. Hence, 1 should ever comparison the lodging indebtedness involvement rates offered by antithetic lenders earlier opting for one.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts, and not of Mint. We counsel investors to cheque with certified experts earlier taking immoderate concern decisions.

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Published: 08 May 2024, 02:43 PM IST