Income Tax: How much tax can be saved from home loan, how will you get exemption, know everything..

If you are thinking of buying your own house, then you will also be preparing to take a home loan. Do you know that along with taking a home loan, you also get the benefit of tax benefits?

You can avail tax deductions under different sections of the Income Tax Act. In this article, we are giving only information about tax exemption on home loans-

Criteria for availing tax benefits
Here you need to understand that all the tax benefits are available with the old tax system only. These benefits are not available in the new tax system.

According to the Income Tax Act, you can get tax benefits on home loans with these sections-

Section 24(b)- Under Section 24(b), the benefit of tax deduction is available on annual home loan interest up to Rs 2 lakh. However, this deduction is available only on self-occupied properties. There is no limit for non-self-occupied property.

Section 80C: Under 80C, the home buyer gets the benefit of a deduction on the principal amount. A tax deduction of Rs 1.5 lakh can be availed annually on repayment of the principal amount of the loan.

Section 80 EEA: Exemption is available on additional interest under this section. You can get a rebate of up to Rs 1.5 lakh annually on affordable home loan interest.

Section 80 EE: With this section, first-time home buyers get the benefit of tax deduction. You can avail interest deduction of up to Rs 50,000 annually.

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