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Income Tax Benefit - Home Loan

May 12, 2020By Admin

Income Tax benefit Home Loan. As we all know Government of India announced the most beneficial scheme for all Indians. To save the income tax, any of salaried and self employed persons are allowed to invest some defined part of the money on yearly basis as home purchase and it will be exempted for a fixed bracket for Income tax benefits. Investment will be considered in the  yearly interest paid to the lender of home loan and addition of the fixed principle amount paid to the housing loan providers with the fix bracket of the maximum amount of the principle amount, it will be covered under the rule of home loan exemption category.

Here are some helpful details of the Income Tax Law & Tax Saving for the Home Loan Buyers.

Income tax benefit home loan:

Home Loan interest & principle exemption limit as per the income tax law. It entitles the applicant for income tax benefits of up to Rs 1 Lac against interest repayment under section of Income tax 24 & up to Rs 1 Lac for repayment of principal during the financial year. To avail the features of saving tax from the investments in home loan, customers must have to file income tax returns and submit the correct proof of the investment as the interest certificate from the lender institute and the same has to be verified by the company. If you are salaried customer and want to take the tax benefit each month, it is very simple. Just need to declare about your all investment to your current employer and send the scan copy of the investment proof to the company and the same to be updated on your system as well as per the current company HR process and after that you will save your monthly deduction of the tax from the monthly salary from the employer.

Income tax home loan:  We buy any of the residential flat, bungalow in any of the state territory, city, town or any of the village places in India. Customers can take the home loan services from any of the registered PSU banks or private sector bankers. NBFCs or other RBI affiliated organizations in India. All the customers are eligible for home loan in India as per the income and eligibility parameter. Normally housing loans are availed for maximum loan tenure of 25 years and it helps to enhance the borrowers loan eligibility and it reduces the EMI burden of the customers. PSU banks are offering the large tenure on housing finance with the lowest interest rates. Banks are providing the facility for all Indians and lending the home loan services very close to their base rate of the lending cost and a little of fixed margin cost is added in to the base rate. Margin rate will remain fixed and base rate is floating and it can be changed by the banks time to time.  When RBI increase their rates of lending to the PSU banks or any other financial institutions also increase the rates.  To enable the best features of the products, banks are also offering fixed interest rates for limited periods on the compete tenure of the home loans.

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