In this article I am writing about the Home Loans and how to get the maximum benefits on Tax Savings. If you are not aware, Home Loans are the best source for Tax Savings plan. You cannot use Car Loans, Personal Loans or any other loans for the Tax Savings plan. But, still many people not aware of how to utilize the potential of use this plan. We will look into this article on rules and regulations you must know before planing the Home Loans and getting the Tax Benefits. Please post your feedback on the comments section. I would be happy to answer all your questions. You can subscribe to our future articles here.
Tax Limitation on Home Loans
Income Tax act 1961, provides two section where you can use home loans for the Tax Savings purpose. The two sections are :
- Section 80c
Under this section maximum of Rs.100000(one lac) can be exempted from the Income Tax on repayment of principal on home loans.
- Example 1
If your Taxable Income is Rs.500000 and your yearly home loans principal repayment is Rs.80000, then your Taxable Income is Rs.500000 – Rs.80000 = Rs.420000.
- Example 2
If your Taxable Income is Rs.500000 and your yearly home loans principal repayment is Rs.100000, then your Taxable Income is Rs.500000 – Rs.100000 = Rs.400000.
- Example 3
If your Taxable Income is Rs.500000 and your yearly home loans principal repayment is Rs.140000, then your Taxable Income is Rs.500000 – Rs.100000 = Rs.400000. Because you can exempt maximum of one lac under this section.
- Other savings
Note that under this section (80c) you can show other savings like Public Provident Fund (PPF), etc. Maximum limit Rs.100000 includes all the savings. If you are declaring Rs.100000 as the principal payment, then you can not include other savings.
- Section 24b
Under this section maximum of Rs.150000(1.5 lac) can be declared as the interest payable on the Home Loans. As we have shown the examples, here as well the rule is same. You can exempt maximum of Rs.150000.
Points to Consider while computing Income Tax on Home Loans
- Income Tax exemption can be sought only once the construction is complete. You can seek Tax Benefits only from the financial year in which the construction is complete. There will be no deduction for the year in which the construction is still on as at the end of the year.
Income Tax Policies on Principal Repayment
- Principal Repayment can be considered as a valid investment under section 80C only if it is made for a self occupied house. That is, you should be living in the house for which you are making the Principal Repayment.
- If the house is not in the city in which you are working – in which case you can claim the principal repayment as an investment under sec 80C even if the house is not self occupied. For example, if you are working in Bangalore and have one house in Chennai for that you are paying the EMI, you can claim the Tax Benefits on the Principal Repayment even if the Chennai house is rented out.
- If you have taken the home loan in joint name, the Tax Benefit (for both Principal Repayment and Interest Paid) would be available to both of you if the house is also in joint name.
Income Tax Policies on Interest Repayment
- The interest payable for the pre-acquisition or pre-construction period would be deductible in five equal annual installments commencing from the year in which the house has been acquired or constructed.
- The interest towards home loan taken for purchase, construction, repairs, renewal or reconstruction of house property is eligible for deduction under section 24(b).
- In case the property is rented out even for a part of the year, there shall be no limit on this, and entire interest on Housing Loan is deductible under section 24(b).
- The best part is that there is no restriction of “Self Occupied Property” for claiming the tax break on interest paid under sec 24. In fact, if you have rented out the house, and the rent you receive is more than Rs. 1.5 lacs per year, ALL interest paid (even if it is more than Rs. 1.5 lacs) is deductible from the rent received – provided that the interest paid is not more than the rent received.
- If you are paying the EMI for 3 houses, you can claim interest paid for all the 3 houses under Sec 24 as long as it doesn’t exceed Rs. 1.5 lacs.
Few Examples would help to understand
Kamalan bought a house in Bangalore and staying that house. He got the loan amount of Rs.1000000 for that house. He is also working in the Bangalore city. His yearly Principal Repayment is Rs.100000 and Interest Repayment is Rs.40000.
- He can save total of Rs.140000(Rs.100000 + Rs.40000) since he is occupied that house and also staying in the same city.
Later he bought another house in the Chennai and took another Home Loan of Rs.1200000. He then started paying the EMI for that loan amount. He opted to rent out that house. His Principal Repayment is Rs.110000 and interest payable is Rs.50000 per anum.
- He is eligible to show the Principle Repayment under the Tax Savings. Please note that the maximum amount he can show as the Principal Repayment is Rs.100000. In this case even if the rule permits him, he already repaying the principal of Rs.100000 for the Bangalore house. So, he already reaching the maximum limit.
- But, in the case of rent payable, there is no limit on Tax Savings. It is because he rented out the house. This rules under section 24b. When you are applying for Home Loans and proposing that the house will be given for rent, you will be eligible for no limit on interest payable under Tax Savings.
Some of the terms used in the Home Loans:
- EMI: Equated Monthly Installment till the loan is paid back. It consists of a portion of interest and the principal
- Floating Rate of Interest: Rate of Interest which varies with the market lending rate. This means that there is an element of risk of paying more than budgeted amount in case the lending rates goes up
- Monthly Reducing Balance: In this system interest reduces monthly with repayment of Principal amount
- Annual Reducing Balance: In this system principal is reduced annually at the end of the year so you end up paying interest even for the portion of principal you have actually paid back
- Fixed Rate of Interest: Rate of Interest remains unchanged throughout the period of the loan
- Processing Charge: It’s a fee payable to the lender on applying for the loan
- Prepayment Penalties: When loan is paid back before the agreed term of the loan, then banks/ institutions charge penalty for the prepayment
- Commitment Fee: Some institution charge commitment fee in case the loan is not availed within a stipulated period, after it is processed and sanctioned
- Miscellaneous Cost: It is quite possible that some lenders may charge documentation or consultant charges .
Use our consulting service for Home Loans (JUST Rs.500)
Summary
Update : Home Loans and Income Tax Benefits – Part 2
The above write up is very comprehensive on Home Loans and Tax Savings. The facts are taken from many sites and I used different resources to check the accuracy. This post will be very useful for the people who want to invest on properties and get the Benefits of Income Tax. I might have missed few points and I will update the post if I come across. You can post it in the comments if there is any mistakes. You can subscribe to our RSS feeds.
If you have any queries on Home Loans and Tax Savings, please drop a comment with your mail id, I will contact you with the details.
December 30, 2010 at 3:32 am
Hi,
Good evening.Recently I have purchased a house.I have taken home loan Amount Rs.1572000.Coming January on wards I have to pay Rs.19000 EMI to bank.At present i am staying rental house.Coming Feb i can occupy the house.Shall i show this emi to incom tax benefit.How much I can show to IT.Which documents should be summit and where i get?
December 31, 2010 at 10:13 pm
I am building a new house in my native (Currently i am employed out of my native state) and wish to apply for a home loan. We are going to produce the credentials of the old house as security for loan. The old house is registered in my fathers name. Can we go about with a home loan in joint name? Is it possible for me to avail tax exemption on the interest paid on tis loan?
December 31, 2010 at 10:15 pm
house is not registered in my name and i have a joint account on home loan. is it possible to avail tax exemption?
January 4, 2011 at 12:02 am
Dear Krishna,
I am paying EMI of home loan for one property which is still under construction.
EMI paid show both Interest & Principal parts.
Can i get Tax benefits from it as house is still under construction ?
Also , if later on i will purchase another Home , then can i will get Tax-Benefits on 2nd Home Loan EMI also with first home loan EMI ?
January 4, 2011 at 12:03 am
Dear Krishna,
I am paying EMI of home loan for one property which is still under construction.
EMI paid show both Interest & Principal parts.
Can i get Tax benefits from it as house is still under construction ?
Also , if later on i will purchase another Home , then can i will get Tax-Benefits on 2nd Home Loan EMI also with first home loan EMI ?
Thanks & Regards
Ashish
“Be a Part of Solution”
January 6, 2011 at 11:39 pm
Hi,
I have purchased a house in December 2010, EMI will be deducted from Jan’11, Can I get HRA Benefit from April – Dec2010 and Housing Loan benefit for tax purpose from Jan- March 2011. I have occupied the house in Jan’11.
Thanks,
Jaya
January 7, 2011 at 12:23 am
Hi,
I have taken a loan of ~34,000,000 in March 2006. I got the offer of possession in the month of Dec 2010. Can you please clarify in case of SOP am I eligible to take tax rebate on the limit of 1,50,000 or 30,000.
I heard that there is a clause of 3 years
. The limit is Rs 1,50,000 if the construction is completed within three years from the end of the financial year in which the first disbursement is taken.
Thanks,
Tuhin
January 7, 2011 at 12:23 am
Hi,
I have taken a loan of ~34,000,000 in March 2006. I got the offer of possession in the month of Dec 2010. Can you please clarify in case of SOP am I eligible to take tax rebate on the limit of 1,50,000 or 30,000.
I heard that there is a clause of 3 years
. The limit is Rs 1,50,000 if the construction is completed within three years from the end of the financial year in which the first disbursement is taken.
Thanks,
Tuhin
January 7, 2011 at 12:25 am
Hi,
I have taken a loan of ~34,000,000 in March 2006. I got the offer of possession in the month of Dec 2010. Can you please clarify in case of SOP am I eligible to take tax rebate on the limit of 1,50,000 or 30,000.
I heard that there is a clause of 3 years. The limit is Rs 1,50,000 if the construction is completed within three years from the end of the financial year in which the first disbursement is taken. Otherwise the limit is 30000 only.
Thanks,
Tuhin
January 7, 2011 at 12:25 am
Hi,
I have taken a loan of ~34 lakhs in March 2006. I got the offer of possession in the month of Dec 2010. Can you please clarify in case of SOP am I eligible to take tax rebate on the limit of 1,50,000 or 30,000.
I heard that there is a clause of 3 years. The limit is Rs 1,50,000 if the construction is completed within three years from the end of the financial year in which the first disbursement is taken. Otherwise the limit is 30000 only.
Thanks,
Tuhin
January 11, 2011 at 4:34 am
I have taken aHome loan from SBI of Rs. 15,30,000/- in the month of March 2010. My Flat is on verge of completion, still not handed over (under Finishing) and hence Not Occupied. Till today the deduction of Loan Repayment is made from my account is Rs.95,000/- as Principal and Rs. 1,00,100/- as Intrest. What benefit should I gate from Income Tax in current year i.e. 2010-11 (Assesment Year 2011-12)
My service place KHAPERKHEDA is differet than the place of my Flat NAGPUR @ 25 Km away but in same District. I have occupied Co.’s Quarter and Qtr rent is deducting. No Subsidi on that.
Please solve my deficullty.
January 17, 2011 at 3:17 am
Hi Krishna,
Can I claim benefit on the Stamp Duty and Registration charges that have incurred for the Flat. The flat is still construction and I am paying a PreEMI interest. I am staying in rented house still.
If I cant claim the benefit of the Stampduty and registration as the flat is stil under construction, can I use it for tax benefit in next financial year once the construction is complete (It may take next financial year) ?
January 21, 2011 at 1:08 pm
I have taken loan of 822138/- for which i am paying principal of Rs.57088/- & interest of Rs.57858/-. Principal will be included in 80C tax benefit & interest will be included in u/s 23 & 24. Now if i make a prepayment of Rs.125000/- under which section can i get tax benefit. Pls advise.
February 1, 2011 at 5:57 am
Hi Krishna,
Can I claim benefit on the Stamp Duty and Registration charges that have incurred for the Flat???
The flat is still construction and I am paying a EMI from Dec 2010. I am staying in rented house still.
If I cant claim the benefit of the Stampduty and registration as the flat is stil under construction, When I can get the TAX benefit??
Thanks
Manoranjan
February 5, 2011 at 4:43 am
I have taken home loan in july2007 and expected to get possession in Dec’2011 (delayed due to many reasons). As full disbursement was done dec’2007, EMI ( not pre-EMI) was started from Jan’2008.
1)I am claiming Principal as part of tax exemption under 80c. Is it correct?
2) during this period if I make part payment. Is it eligible under sector 80c?
3) As EMI started in Jan’2009. when can I get benefit for interest?
4) If possesion is after 3 years of loan starting, will my 1.5 lacs benefit will be reduced to 30000? is there any workaround?
February 7, 2011 at 8:43 pm
is the home loan EMI interest and repayment of ongoing construction are claim for Incometax rebate?
February 9, 2011 at 4:03 am
Hi, I have taken home loan for renovating ground floor and constructing first floor. Earlier there were no home loans taken.
I am residing in a near by town (20Km) away from my factory location. (i.e. in the same house for which i have taken loan)
How can I claim tax savings w.r.t principle repayment as well as intereset repayment.
March 5, 2011 at 8:52 am
If I buy a house jointly with my wife and take a joint home loan, can we claim income tax deduction individually; and how much we claim income tax deduction individually?
March 5, 2011 at 9:10 am
Hi,
If I buy a house jointly with my wife and take a joint home loan, can we claim income tax deduction individually; and how much we claim income tax deduction individually?
March 7, 2011 at 1:34 am
Hi,
Earier as per below statement of Swati on July 21st, 2009 at 4:51 am, you had said, even on downpayment, after possesion only, the claim can be executed.
Is there any rule changed for 2010-11,can the cliam be made on repayment of EMI (as PRincipal + Interest) and interest accrued.
Please reply.
Regards
Birendra Kumar
Swati said: Hi
I had taken a home loan of 20 L in Oct 2007 for an apartment, This flat would be ready for possession in Oct 2010. I made a downpayment, I am paying EMI of 18700/- per month, and have paid almost 1.7 L as interest in the last financial year in itself. My bank has given me a certificate of the principal and the interest component paid.
As I understand from above answers, Since the property is still under construction, I am not eligible to claim this deduction . Kindly confirm?
In case I need to claim this after possession, I would have paid almost 5 L interest in the previous three years, Would I be able to claim the interest component after possession. For example in financial year 2011, I would be claiming for the interest paid for the year approx 1.5 L, would I be able to claim the refund of previous payments over the limit of 1.5 L (or the 1.5 L limit covers previous year and current year interest payment)
Regards
Swati
July 21st, 2009 at 4:51 am
March 8, 2011 at 3:49 am
I am a Central Govt. Employee working in Delhi. I have purchased a under construction Flat in Hyderabad by taking a housing loan of Rs.8,00,000/- from Dewan Housing Finance Limited. Now, the Builder is giving the possession of the Flat next week.
Loan Details
Booking the flat on 17.11.2010
Registered the flat on my name (under Constrction) on 21/12/2010.
DHFL releasea loan amount of Rs.5,90,000/- at the time of registration of the flat on 21.12.2010.
Now, the Building is complete and ready for Possession.
DHFL released final loan amount of Rs.2,10,000/- on 26.02.2011.
I am going to Hyderabad for taking the possission of the flat.
I would like to know, what are the documnets required for claim tax ememptions. Kindly clarify the tax exemptions available if the flat is rented or not rent.
March 9, 2011 at 2:43 am
my wife is earning and i am not can i claim interest on jome loan
March 9, 2011 at 2:46 am
mr. satyanarayana send me cheque of Rs.11000 and distribute sweets to all and take possession of ur dream house and enjoy onlyforget about exemption
March 10, 2011 at 6:57 am
question: We(Husband and wife, both working) are about to take a home loan jointly.The home will be registred in both the names.Bank is informing that they will deduct EMI through ECS from only one account only (Husband’s) but will give certificate in both the names. In this case, will my wife be eligible for 50% IT rebate for both principal and Interest part?Please remember that the EMI deduction will be only through Husband’s account.I think, my wife is not eleigible for IT rebate as funds are going only from my bank account.Please suggest what can be done to include her also for IT rebate.Thanks.
March 16, 2011 at 1:46 am
Dear Sir,
I purchased a house in near by village in Hyderabad (from hyderabad it is around 14 kms) and for which I took housing loan of Rs.14.00lacs in Oct’10 and taken position. But, not occupied by me also not given for rent. I am staying in a rented house and paying Rs.6500/- p.m. as a rent. As of now, I paid 2 installments i.e. Rs.29000/- to the bank. Pls guide me how could i show it in my computation report. and what is the total benifit amount i am getting from the above. Pls clarify at the earliest.
March 19, 2011 at 7:07 am
Dear Sir,
I am a salaried person working in a private company. I had taken a home loan with floating rate of interest from ICICI HFC in 2008. I am regularly paying installments. My bank had issued me a provisional home loan account statement to me, which is sufficient & valid to claim deductions for TDS. The final statement will be issued in April or May. By my company insist that provisional home loan account statement is not at all valid to claim deductions for TDS. So if i do not submit final statement to them before 31 March then they will deduct the TDS accordingly. So i am in a bit of dilemma because my bank will not be providing me final statement before 31 March. So sir please guide me in this regard that whether the submission of provisional home loan account statement is valid, if yes by which law or segment of law.
With Regards,
Amar Chavan.
March 20, 2011 at 10:22 am
Hi,
Currently I am staying in Rented house in Bangalore, I booked a new ready to occupy apartment. I can’t stay in my apartment as the distance is too far from my Office, So I continue to stay in my current rented house. I would like to rent out my apartment to other
So please clarify me, if I stay in same city in the rented house & claim the HRA & rent out my apartment & claim the Interest paid benifit & principal repayment am I eligible for both HRA & Interest paid benifits.
March 24, 2011 at 12:43 am
Dear Sir,
Me and my wife both are working. We have taken two flates as under
1st flat- joint ownership but loan taken by me and being paid by me only (through staff loan). My wife is not paying any part of emi.
2nd property- booked in my wife name and i am co applicant in loan due to bank’s requirement. Loan will be paid by my wife only through her salary account only.
What will be tax benefit for us from both property. I want to claim 100% from first property. My wife want 100% benefit on second propert. Pls put some light on the issue.
March 27, 2011 at 1:56 am
Sir,
The property is rented out & He has got the loan from financial institution or from department for housing He is getting the rent from the rented house. Please clarity the following in details with example on my e-mail address :-
My email address is koulvivekji61@gmail.com
1) Is there any standard deduction under section 24 (a)
2) what will be the interest rebate under section 24 (b)
April 5, 2011 at 8:53 am
I HAVE TWO HOMELOANS.
CAN I GET TAX BENEFIT FROM BOTH.
HOW MUCH.
1st emi-7000/
2nd emi-19000/
April 6, 2011 at 7:11 am
I own a plot and would like to construct a home by availing a housing loan jointly in mine and my husband’s name. Bank says loan amount can be sanctioned based on both our salaries and emi deducted from both of us(50-50, 60-40 etc) but only I (and not my husband) can avail IT exemption as the plot is in my name. Is this true? Is it advisable to transfer the plot to his name (thru gift deed etc) as he is paying more income tax than me? kindly advice. thanks.
April 8, 2011 at 2:24 am
I took a home loan in April 2009 for under construction building in crossing republic and possession is due this year and hopefully will get in Dec or Jan,2012
Till now I have taken principal amount benefit in 80C and also showing HRA slips in 2009-10 and 2010-11.
1.For current financial year 2011-12, can I take both loan interest and HRA benefit. Loan interest as I will be getting possession in this financial year and HRA as I have to stay in rented house.
2.Secondly, from next year, can I avail both HRA and loan benefits as crossing republic is not well developed and I can’t move there and I have to stay in rented place.
3.Thirdly, how can I claim loan interest paid Pre-possession
4.In 2nd step, if I can’t take both HRA and loan benefits together then I will prefer to take HRA benefits. In that case, still I will be able to claim pre-possession interest amount in five equal installment.
I somewhere read that I can take both HRA and loan benefits after paying declaring notional amount as rent for my new flat.
April 9, 2011 at 3:19 am
I Want to know @ Interest paid and Principal Paid during construction period.
I have take Loan of Rs. 2000000/- in 2011 and possesion given by builder on 2013. During this period i have to pay my EMI of Rs. 18700/-.
How much amount i am eligible for Exemption in Income tax under sections, during construction period ?
Kindly advise.
Thanks & Regards
Mukesh Bhadoria
April 14, 2011 at 5:14 am
Dear Sir,
What is the provision in Income Tax, having 2 houses.
Like 1 home loan complete and staying in this house, and already taken the benefit in Income tax as principal and interest. the loan will get finish by 2 months.
Now if i am planning to buy another house thru thru bank loan, then
(1) Can i again take benefit in IT as Principal (upto 1 Lac) & 1.5 lakhs?
(2) Is it necessary to show the first house rented out and need to show the Rent as income
(3) My wife is house wife. can i purchase and registre the another house on her name and take some benefit.
please let me know
thanks in advance
Shailesh
April 15, 2011 at 6:28 am
Hi,
I have bought a house in 2008 and self Occupied.Me and my husband are co-applicant but not co-owners.I am paying arout 2.25 lakhs as interest.I am claiming 1.5 lakhs.Can my husband can claim the remaining under section 24 .
April 22, 2011 at 2:06 am
If i intend to purchase a flat which is ready fr possession in next 2-3 months time . The Home loan approx 60 L and EMI Rs 66 k/month ie 8 L /annum apart from it Interest amt repayments approx 6 L /annum . My querries (i) Will i get every year Principle amt Repayments : 8L + Interest pais : 6 L as Rebate ie Taxabale income will get reduced every year by 1 L (Principle) + 1.5 L (interest) = 2.5 L ; as u cd see as above every yr Principle repayments + Interest > 2.5 L . Please revert back
May 1, 2011 at 11:32 pm
I want to know that any additional repayment other than EMI on my home loan is subjected to tax rebate or not.
Thank you.
May 10, 2011 at 12:37 am
Hi,
I am planning to take a home loan. The maximum I can offord to pay as EMI is about 12 to 13K a month. Could you please suggest which bank offers good rates and how much loan can I go for? I can manage the other part of the money.
Wat is loan amount i can go for and how many year repayment is better.
Thanks
Ashok
May 11, 2011 at 8:52 am
I am ramakrishna, working in Pune. I had one house in hyd and paying interest 50000 (50K) per year. Now I am planning to buy another house for which I may need to pay 2.0 lacs as interest. But i am staying in pune itself. Here my query is, am I eligible to get exemption for both HRA and interest on pune house or not.another is how much interest can be exempted per person is it 1.5 lacs or more than that.
I would be more happy and thankful to you goys if you clear my dooubts in this regard.
May 19, 2011 at 1:58 am
Hi Krishna,
I booked an under construction Flat in Nov-2010 in same city where I was living in a Rented Home.
I did Sale and Construction Agreement on 1-Dec-2010. Not paid any amount towards Stamp Duty and Registration till now.
Home loan (Rs.3500000) was senctioned in May-2011 & I shall have to start paying Pre EMI installments (Rs.33498/Month, inclucing principal & interest) from 01-June-2011 onwards.
I will get the possession on 31-Dec-2012.
Date of loan senctioned : 30-Apr-2011 Rs. 3500000.00
Purpose : Purchase of flat under Construction.
For Rented Flat,
I am paying a rent of Rs.11500/- and also having Rent receipt for Apr-2011.
My Query is: 1. Can I get tax exemption benefit for my Home loan (Principle amnt and Interest) and also HRA?
2. Or any one (HRA or Home Loan) benefit only I can get?
3. If I can get both or any one benefit then What information I should need submit for maximum Tax benefits.
Please clarify me to get maximum tax benefit.
Please let me know if more information is required for the resolution of my query.
Regards,
Arivoli S.
May 25, 2011 at 10:07 am
Hi,
I have couple of query regarding Home Loan and Tax Rebate.
1. Can I have multiple home loan( 1 home loan for 1 house) and if yes then can I get tax benefit for all together.
2. If I am taking a home loan for the property which is in same city where I am residing currently ( in company provided flat). In this scenario how much tax benefit I can get on Home loan repayment is there a bracket of 1.5 lks or there is no bracket.
May 30, 2011 at 4:44 am
I have taken Home loan for constructtion of home from SBOP. The plot is solely on the name of my wife. My wife is not working. I am paying instalments of EMI of home loan from our joint saving account.
Please let me know whether i will get any tax benfit from my taxable income.
June 29, 2011 at 8:37 pm
The property papers are in the name of my wife only. I & My wife has jointly applied for housing loan accordingly bank has sanctioned the housing loan. now we are jointly paying the EMI to the bank. I applied to my employer to give the rebate on Income Tex but my employer has not given me rebate and deducted Income Tax stating that I am not First applicant in the housing loan and property is also not in my name.
I want to avail the income Tex rebate facility. Kindly guide me.
July 9, 2011 at 11:48 pm
Dear Sir,
I am planning home loan of 3000000 for property at Splendid Royale Bangalore which will be complete by Sept 2012. It’s approved by SBI, Federal, and some other banks. Federal giving an offer as no pre-emi till ready to occupy. It’s interest rate is 10.5. SBI not giving this offer but interest rate as 10.25. Which bank will be best for me.
Waiting for your suggestion.
Regards,
Sukant
July 16, 2011 at 4:46 am
House loan was sanctioned to me by the SBI which included the component of Rs 140000 towards cost of registration charges and Rs 168000 towards cost of premium of insrance paid by SBI to SBI life. My question is that whether Rs168000 would be taken into account for the purpose of avaling tax benefits under Income Tax Act
July 17, 2011 at 9:31 pm
I took a housing loan from SBI for purchase of flat. The housing loan included an amount of of Rs 1550000 toward cost of the flat,Rs 188000 towards payment of premium to SBI life and Rs 140000 against registration cost of the house.The bank has fixed EMI by including all the components together.It may be clarified whether Rs 188000 will be counted for availing the income tax benefit under housing loan.
July 18, 2011 at 4:35 am
Hi,
Am in rented house and paying Rs 10,000/- per month.
I booked a flat for Rs 28,50,000/- and took 20 Lac home loan. Date of possession will be Jan 2012
Now am paying PreEMI from Apr 2011. Expecting to be pay Rs 80,000 before date of possession.
I will be stay in new home once it completed.
My question is
1. Can I get HRA and Homeloan (interest + repayment of principle) tax benefit on this finanacial year?
Total expenses for this year is 90000+80000+57901 = 227901
Below is the split-up on expenses
———————————
Rent paid for 9 months (from Apr to Dec) is 9*10,000 = 90,000
– PLUS –
PreEMI until december is 80,000 (approximate)
– PLUS –
EMI from Jan 2012 to Mar 2012
Interest = 49934
Principle = 7967
Monthly EMI = Interest + Principle
**********************************
19300 = 16667 + 2634
19300 = 16645 + 2656
19300 = 16623 + 2678
—————————–
57901 = 49934 + 7967
—————————–
So how much I can get benifit from section 80c and 24b along with HRA
Note: HRA allowance for this year is RS 1,15,764/-
August 11, 2011 at 1:51 am
super post..
nice info
August 11, 2011 at 9:05 am
I have taken home loan jointly with my father for extension of our existing house. The house is only on my father’s name but he is retired from service .The loan on his name alone was not possible and as the house is not in my name so for extension of that house,loan was also not possible on my name alone ,hence loan has been sanctioned jointly. The EMI for the house loan are being paid by me .My father’s pension is below two lakh .So he doesn’t file ITR .Can I claim Income tax benefit for this home loan .
August 25, 2011 at 1:01 am
I have taken a House Loan in the Year 2008 in Kanpur and paying interest @ Rs. 45000.00 per annum. Presently I have been posted at Allahabad.
Query: Whether my HRA may be exempted from emoluments towards calculation of Income Tax or otherwise. What rebate is admissible under this situation in Income Tax?