TAX benefit for House Loan

Tax queries 780 views 5 replies

is there any tax benefit for home loan, if a person having home loan then how he will get tax benefit and i which saction??? if any...

Replies (5)

DUAL BENEFITS...

 

FIRST IN SECTION 80 C FOR PRINCIPAL REPAYMENT AND THEN IN SECTION 24 FOR HOUSING INTEREST UPTO RS 1,50,000

but if a person is salaries employee and he has home loan then can he gets benefits of sec 80C and 24(b)

inerest on housing loan shall be allowed for deduction under section 24b and the repayment principal amount only shall be allowed as deduction under section 80C.

Interest paid on loan is allowed as deduction while calculating House Property Income. Principal repayment is allowed as deduction while calculating Deduction from total Income under 80C

Dear Riyaz, 

If any body has taken a House Building Loan he can claim the tax benefit in following manner:-

Principal of  loan under section 80C (possession/completion not required)

Interest on borrowed capital under sec 192(2b) anjd Sec 24 (but possession/completion  required )

 

Kindly refer Sec 23& 24 of IT Act 1961 for more information.


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