Do you have home loans? Are you Know your Section 24, Section 80C,

you have home loans? Are you Know your Section 24, Section 80C, 

80EE; 

get this more tax benefits

Home buyers, know your Section 24, Section 80C and 80EE

Our tax laws are filled with great rewards in the form of tax deductions for owning a house.

Given below are some sections that incentivize people to invest in their first home. With the impending tax season, when everybody is looking to save that extra amount, Section 80C, 80EE and 24 offer huge relief to home owners.

Joint home loan can maximize tax benefits. Here’s how!

You can enjoy all the aforementioned tax benefits twofold if you take a housing loan jointly with your spouse. Since the home loan amount is usually humongous, both can avail maximum deduction separately. However, the law applies only if you both own the property.

Wait, there are more under Section 24

a. Home Improvement Loan

It covers the renovation and construction costs. You cannot claim deduction on goods like electronic appliances or furniture. If you avail a personal loan towards home improvement, you can claim deduction up to Rs. 30,000.

Don’t forget to specify the purpose of the loan whether it is adding a room, re-tiling, repainting, renovation with permit and/or kitchen remodeling. However, only the expenses for construction can be claimed and not the cost of cabinets, tiles or any consumer durable.

b. Personal loan towards the property down payment

Sometimes people rely on personal loans to meet the down payment requirement. However, personal loans come with higher interest rates. Fortunately, interest part of the personal loan repayment amount can be deducted as per Section 24 - within the Rs. 2 lakhs deduction. This is because income from residential property is calculated after subtracting repair  expenses, interest for loan taken for acquiring the house and related expenses. And if you have availed a personal loan for the same, go ahead and claim your deduction.

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