How to take benefit of Home Loan decdution Under section 24, 80C and 80EE.
There are two part in Home Loan Deduction
1. Repayment of the Principal Amount
2. Repayment of the Interest on Home Loan
Seven Steps must know before claiming your Home Loan intestes and Capital :
Step 1. Documents for claim Home loan intreste and capital
– Ownership must on your name
– construction must be complited. Pre construction priod interest is allowed to claim in 5 equal years from date of coplition or date of purchae of property
– Certificate from bank for your intresrst and ccapital repayment.Sr
Step 2. Summit All documets to your employrer or in case of business to cliam yourself
Step 3 Sefl occuipied or let out : In both cases maximum limit of interst is 200000
Step 4 How to cacluate incompe of Home Property
Yearly Rental recived or Self occuipied then Nil ——
Less Muicipal Tax acutlly paid by owner ——–
Total Rental Recived ———–
Less 30% Stander deduction ————
Taxable income form House Property ————-
Step 5. Claim Pricipal repayment Under Section 80 D upto 1.5L
Step 6 House Property should not be sold within 5 years
Step 7 Section 80EE: Income Tax Benefit on Interest on Home Loan (First Time Buyers)
Arun Jaitley while announcing the Budget 2016 re-introduced Section 80EE which provides for additional Deduction of Rs. 50,000 for Interest on Home Loan. This incentive would be over and above the tax deduction of Rs. 2,00,000 under Section 24 and Rs. 1,50,000 under Section 80C.
This Deduction of Section 80EE would be applicable only in the following cases:-
1. This deduction would be allowed only if the value of the property purchased is less than Rs. 50 Lakhs and the value of loan taken is less than Rs. 35 Lakhs.
2. The loan should be sanctioned between 1st April 2016 and 31st March 2017.
3. The benefit of this deduction would be available till the time the repayment of the loan continues.
4. This Deduction would be available from Financial Year 2016-17 onwards.
You can claim HRA as well as tax deduction on home loan
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CA Himanshu Kumar
