Claim income tax benefits on home loan?

Ask the Community Income Tax
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What is the detailed process to claim income tax benefits on home loan?
Also, what are the Sectiona 80EE or Section 24? Which one is useful to claim this benefit?

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The maximum benefit of Home Loan which can be claimed as a Deduction in India is as follows:-

Section 80C-Up to Rs 1.5 lakh on principal repayment (including stamp duty and registration fee)
Section 24(b)-Up to Rs 2 lakh on home loan interest component
Section 80EEA-Up to Rs 1.5 lakh on interest component for first-time homebuyers

update- A home loan borrower can claim tax benefit under Section 80 EEA, if it has a home loan sanctioned in between 1st April 2019 to 31st March 2022.

Tax Deduction on the Home Loan Principal Repayment under Section 80C
As per Section 80C of the Income Tax Act,

  1. You can claim a deduction of up to Rs 1.5 lakh on the amount paid as the repayment of the home loan principal. This may include stamp duty and registration fees, but can be claimed once in the same year in which they incurred
  2. The home loan should have been taken for the purchase or construction of a new house.

Tax Deduction on Home Loan Interest Payment under Section 24(b)
As per Section 24(b) of the Income Tax Act,

  1. You can claim a tax deduction of up to Rs 2 lakh on home loan interest paid. This deduction is applicable in case of self-occupied as well as vacant residential properties
  2. In case of let-out or rented residential properties, there no cap on tax deduction

Additional Deduction on Home Loan Interest for Affordable Housing under Section 80EEA
Under this provision, first-time homebuyers can claim tax deduction of up to Rs.1.5 lakh on the interest paid on affordable housing loans. To claim the benefit, the following conditions should be met:

  1. Housing loan should be taken between the period April 1, 2019 and March 31, 2020
  2. The stamp duty value of residential house property should not be more than Rs. 45 lakh
  3. You should not own any residential house property on the date of sanction of loan
  4. You should not be eligible to claim deduction under Section 80EE of the Income Tax Act
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