Deductions on Home Loan

Ask the Community Income Tax
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1

Hi,

What are the available deductions on Home Loan on income tax deductions?

Please share details.

Thank you.

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2

Hi,

There are two exemptions available on Home Loan:

  1. u/s 80C the principle amount of Home loan max limit 1.5L
  2. u/s 24 the interest amount of Home loan max limit 2L.

Hope you have received the reply of your query.

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Deductions Section Maximum Deduction (INR) Conditions
Principal 80c 1.5 Lakh house property should not be sold within 5 years of possession
Interest 24b 2 Lakh loan must be taken for purchase/construction of a w house and the construction must be completed within 5 years from the end of financial year in which loan was taken
Interest 80EE 50,000 Thousand amount of loan taken should be Rs 35 lakhs or less and the value of the property does not exceed Rs 50 lakhs
Stamp Duty 80C 1.5 Lakh can be claimed only in the year in which these expenses are incurred
Interest 80EEA 1.5 Lakh The stamp value of the property should be Rs 45 lakhs or less. The taxpayer is not eligible to claim deduction under section 80EE
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4

Hi adding to @Ankith

S 24b : If construction is not completed within 5 years, only Rs. 30,000/ can be claimed
S 80EE : Rs.50,000/ can be claimed by first time house buyers only
Co-borrower can also claim the benefit subject to being co-owner of the said residential property

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Agreeing with Ankit and Bharat first time buyer can also avail Tax benefit under 80C towards Stamp Duty and Registration , although there is no exemption available u/s 80EE.

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Thanks all. Very helpful.

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