Interest On Home Loan Section

Home loan repayment is eligible for tax deductions under the income tax act 1961.

Interest on home loan section. This deduction is in addition to the deductions under section 80c rs 1 50 000 and section 24 b. This deduction is on an accrual basis and is available only to individuals. Additional deductions are available u s 80ee and 80eea.

Section 24 allows home buyers deductions of up to rs 2 lakhs in a year towards interest payment. 3 qualified residence interestfor purposes of this subsection a in generalthe term qualified residence interest means any interest which is paid or accrued during the taxable year on. This cap however is only for self occupied properties.

Under the provisions of the section home buyers can save an additional rs 1 50 lakhs per year towards the interest paid on home loans over and above the rs 2 lakhs that they already save under section 24 b. The limit under this section is rs. Deduction can be claimed for interest on home loan under section 24 of the income tax act 1961.

Section 80c allows deduction against principal repayment of up to rs 1 5 lakh every year. However higher limitations 1 million 500 000 if married filing separately apply if you are deducting mortgage interest from indebtedness incurred before december 16 2017. Section 24 b interest payable on loans borrowed for the purpose of acquisition construction repairs renewal or reconstruction can be claimed as deduction.

Any interest allowable as a deduction under section 221 relating to interest on educational loans. Tax benefit on home loan for payment of interest is allowed as a deduction under section 24 of the income tax act. The entire interest shall be waived off as a deduction in case the house is on rent.

This deduction can only be claimed if the owner or his or her family members reside in the house property. You can deduct home mortgage interest on the first 750 000 375 000 if married filing separately of indebtedness. Interest payable on a fresh loan taken to repay the original loan raised earlier for the aforesaid purposes is also admissible as a deduction.