Tax Saving Tips: You can save up to 2.50 lakh tax on a home loan, for this you will have to claim in these two sections!

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Home loans make many tasks easier. With a home loan, you can build a new home or buy a new house. For this, you do not need to spread your hand in front of any friend, friend, or relative. Along with this, tax exemption is also available on this loan. Section 80EE of Income Tax gives you an opportunity to save an additional Rs 50,000 in tax under certain circumstances. With this, you get a savings of Rs 2 lakh in section 24. In this way, without saving any effort and sweat, you are saved 2.5 lakh rupees. But the benefit of section 80EE will be available only if you have taken a home loan between 1st April 2016 to 31st March 2017.

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Now let us know how one can save 2.5 lakh rupees in a lump sum on buying a house. First of all, you have to calculate the total home loan interest paid in a financial year. This will calculate the amount of interest paid to you. You can then claim a deduction of Rs 2 lakh under section 24 in the tax return. Apart from this, you get an opportunity for additional savings of Rs 50,000 in section 80EE under the Income Tax Act, 1961. In this way, you can easily save up to Rs 2.5 lakh.

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Who can take advantage of tax savings

  1. Under section 80EE, only first-time home buyers can claim a deduction of Rs 50,000. That is, there should not be any residential house in your name till the date on which you are claiming a tax deduction. The benefit of deduction will be available only if the loan is taken from any financial institution or bank.
  2. Section 80EE benefits are available on a per person basis and not on a per property basis. This means that no matter how many houses are to be built in your name or how many houses you are about to buy, you will get the benefit of deduction only once. It is not that deduction can be taken three times for three houses.
  3. A person can claim a maximum deduction of Rs 50,000 under section 80EE. The benefit of deduction in this section is not more than Rs 50,000.
  4. The good thing is that in addition to section 80EE, you are given the benefit of a tax deduction of Rs 2 lakh under section 24. Overall, you can save Rs 2.5 lakh in tax under both sections. But this will happen only if you are going to buy a house for the first time.
  5. The benefit of section 80EE will be available only if you have taken a home loan between 1st April 2016 to 31st March 2017.