Thursday, 26 May 2016

A Comment on unknown facts of tax reliefs for home loans under Section 24 and 80C

My Comment on an article "Six things about home loan tax incentives you didn't know" published in the Dated 24/05/2016 at 3 pm.

"Very useful information provided in this article by the author. 

The differences between deductions allowed under Section 24 and Section 80C have been clearly mentioned. 

Most of us do not know that tax relief is allowed on interest payments and consultancy or other fees paid for borrowings made even for the repairs and reconstruction of our homes. 

The main points underlined are:

  • You can claim tax benefit for interest accrued for the full year even though you skipped some EMIs.
  • Processing fees and other charges incurred in getting the loan are also tax deductible.
  • Loans obtained from friends and relatives are also tax deductible if taken for home loan purpose.
  • Loan principal repayments during the pre-construction period can not be claimed for tax relief. But interest part of those EMIs can be claimed for tax relief during subsequent 5 years after possession of the house.
  • If it is a joint loan, one should be a co-borrower along with being a co-owner of the house for enjoying the tax reliefs.

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