Home Loan Tax Benefits 2022

Income tax rebates on a home loan can be taken on the home loan principal amount as well as the home loan interest amount. Individuals can avail of tax benefits per different sections of the Income Tax Act, 1961. 

Deductions	Under Section (U/S)	Maximum Deduction Amount
Home loan principal amount	Under section 80c	INR 1.5 lakh
Home loan stamp duty	Under section 80c	INR 1.5 lakh
Home loan interest amount	Under section 80 EEA	INR 1.5 lakh
Home loan interest amount	Under section 80 EE	INR 50,000
Home loan interest amount	Under section 24 B	INR 2 lakh

Conditions to Be Eligible for Different Sections of the ITA

Section 80C

Per section 80C of the ITA, the maximum tax deductible is up to INR 1.5 lakh. The home loan tax benefit is enjoyed on the home loan principal amount. Besides, if the property is not sold within five years, you can avail of a tax rebate of up to INR 1.5 lakh on the home loan principal amount.

Also, you can enjoy home loan tax benefits up to INR 1.5 Lakh on the stamp duty charges paid for the home loan application.

Section 80 EEA

If you’re a first-time home buyer, you can secure a tax exemption of up to INR 50,000 on the home loan interest amount you pay in each financial year. But, the home loan amount must not exceed INR 35 lakh. Besides, the value of the property must not be over INR 50 lakh.

Section 24

If the construction of the property you are willing to buy gets completed within five years, you will be able to claim up to INR 2 lakh, per section 24 of the ITA, 1961. However, if the construction cannot be completed within five years, as a homeowner you can claim up to INR 30, 000. Also, keep in mind that the deduction is applicable on the home loan interest amount only.

Hence, purchasing a restate asset has several home loan tax benefits, and if you purchase it with a housing loan in India you can reap further advantages.

Read Also: Saving Money on Home Loans Through Tax Benefit