Buying your own house is every individual’s dream. The Government of India provides various tax benefits on home loan In order to encourage citizens to invest in a property, Income Tax Act, 1961.These benefits not only reduce your tax bill but also help in managing your cash flow better. It is important to be aware of all the home loan tax benefits as it can help you save a significant amount of your tax payments.
follow these steps to claim tax benefit on home loan
the process to claim tax benefits on a home loan is very simple. you can follow the steps provided below:
*make sure you are the owner or co-owner of the property
*refer to the above-mentioned Income Tax Sections to calculate the total amount you can claim as a tax deduction
*collect your home loan interest certificate from the lender
*give the home loan interest certificate to your employer for TDS adjustment
*if you could not submit the loan interest certificate to your employer, you can submit the same while filing the income tax return
self-employed individuals need not submit any document to claim home loan tax benefits. they just need to keep all these documents *handy if any income tax queries arise in the future.
*In the event that you own two homes, your combined tax deduction for home loans cannot exceed Rs. 2 lakhs in a fiscal year.
*If the property is rented out, there is no upper limit on how much interest you can claim. if you have let out your property on rent, the entire amount of interest paid on your home loan for purchase, construction, repair, renewal or reconstruction can be *claimed as tax deduction.However, the loss you are permitted to claim under the Income from House Property Act is maximum Rs 2 lakhs
