Everyone dream to have a own house! It’s natural! But it is not possible for everyone to own a house with their minimal salaries! Even their salaries permits, they tend to spend on unnecessary things neglecting the dream further!
To avoid this, every salaried individual(subject to the income levels) can plan for home loan. By applying for home loan they stick to the EMI(Easy Monthly Installments)dues.
Besides this, applying for home loan enable income tax exemptions-
- The loan amount can be claimed up to 1.5 lakh under section 80(c)
- The interest income can be claimed up to 2 Lakh under section 24(b)
- Additional deduction of 1.5 lakh is allowed under Section 80EEA subject to-
- The individual is taking the loan for purchase of house for the 1st time
- Stamp duty of the property does not exceed 45 Lakh
On the whole 1.5 Lakh under section 80(c), 2 Lakh under Section 24(b), additional 1.5 lakh(Subject to the terms and conditions) under section 80 EEA can be claimed as tax exemption on taking home loan from a bank/financial institution.
If you are eligible for taking home loan total 4.5 lakh can be claimed(1.5 lakh-sec 80(c),2 Lakh-Sec 24(b),1.5 Lakh- Section 80 EEA as tax deduction.
So be aware of the tax laws and avail tax exemption on home loan as per your eligibility.