Home Loan and Tax Benefits if you Own Multiple Homesby Litty Jose Finance Analyst
Did you know that just like you can own multiple properties at the same time, you can own multiple home loans too? Yes, if you wish to purchase multiple properties at the same time, you can apply for multiple home loans too. The amount of loan you receive will depend on your income and other such factors. But the important thing is that you can claim home loan tax benefit for all these loans.
Purchasing multiple properties can in turn give you returns in terms rent and also get you profit at the time of resale. If you are considering taking home loans for your property then here are some Home Loan Tax Benefits that you can avail.
1. Tax benefit on home loan interest: The interest payable on your home loan, taken for purchase, construction, repair of renovation can be claimed as a deduction under section 24b of the Income Tax Act. This deduction on interest payment is available, for any residential or commercial property owned by you. It is also available, irrespective of whether the money is borrowed from a bank or housing company, or from friends or relatives, for the purpose of repairs, purchase construction, reconstruction, etc.
2. Tax benefit on repayment of principle: Under section 80C of the Income Tax Act, one can claim a deduction of up to 1.5lacs for repayment of home loan taken from specific institutions. This deduction can only be claimed once you’ve taken possession of the property for which you’ve taken the loan. If you start principle repayment before you take possession this deduction is not available to you.
3. Income tax benefit on home loan: The Income Tax Act has many provisions within it to help you save money. These provisions are called deductions. Deductions are a part of your income that is exempt from taxation because it is set aside for certain things like insurance and loan repayment. There are a number of provisions for tax savings on home loans too. Everything from the interest you pay, the rent you receive from a property that you’ve purchased on an ongoing loan and the money you put towards the repayment of your principle amount are all exempt from taxation. Even if you take a loan for the construction, repair or renovation of your property allows you to claim deductions.House Loans thus are a great tax saving tool. They help you save on tax as well as fulfil your dream of owning your own property.
Created on Oct 24th 2017 04:36. Viewed 622 times.