property loan
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Sarath Chandra
(CA Final Student)
(566 Points)
Replied 29 August 2018
Sarath Chandra
(CA Final Student)
(566 Points)
Replied 30 August 2018
Naina Kapoor
(Financial Consultant)
(277 Points)
Replied 31 August 2020
Contrary to popular belief, loan against property extends tax benefits to borrowers under Section 37(1) and Section 24(b). To elaborate, borrowers can claim tax benefits on the amount of interest paid and charges cleared, including documentation charge and processing under Section 37(1).
On the other hand, if the loan amount is used to purchase another house property, borrowers can claim interest up to Rs.2 lakh under Section 24(b). A borrower can put the funds to such usage to claim these benefits.
Intending property loan borrowers should thus become familiar with factors like Loan against property interest rate, eligibility criteria, loan value and tenor and tax benefits, among others. Doing so, they will not only be able to make an informed decision pertaining to the credit but will further be able to manage it smartly.
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)