Home Loan and Tax Benefits if you Own Multiple Homes
by Litty Jose Finance AnalystDid 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.
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Created on Oct 24th 2017 04:36. Viewed 1,003 times.