Loans and Income Tax benefits

Ask the Community Income Tax
1

Hi,

What kind of loans have income tax benefits? What sections can they be claimed in?

Please suggest

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2

Hi @Anisha

Loans as such is not good for health :slight_smile: but considering the current situation it’s something that is unavoidable too.

Some loans that have exemptions and benefits are:

  • Housing Loan (both principal and interest)
  • Education Loan (only Interest part)
  • Electric vehicle purchased (Interest part)
  • Car lease / other company provided benefits where taxation is reduced due to FBP.

And the much expected ‘personal loan’ if taken for home renovation/ improvement - subjected to conditions (Interest part)

Are some in general ones, which I’m aware of.

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