Chromepet, Chennai - 600044.
Mon to Sat: 8.00 am - 7.00 pm
Mon to Sat: 8.00 am - 7.00 pm
Chromepet, Chennai - 600044.
ASN Housing helps you understand the tax benefits on home loans, as outlined in the Income Tax Act, which offers incentives for purchasing residential properties, including apartment tax payment benefits. Our in-house tax consultant will guide you through the available advantages when buying an apartment in Chennai or flats in Chromepet. Home loan tax exemptions are especially beneficial for first-time homebuyers.
The Income Tax Act has incentives for those who buy residential property, including apartment tax payment benefits. ASN Housing assists you in understanding these tax advantages. Our in-house Tax Consultant will guide you through the various benefits available to you when purchasing an apartment in Chennai, or even flats in Chromepet.
Contact us at: contact@asnhousing.com. The following information will help you perceive the tax benefits available.
There are certain tax benefits for resident Indians based on the principal and interest components of a loan under the Income Tax Act, of 1961. You may be eligible for tax benefits up to Rs. 50,490 p.a. (approx) if an interest repayment of Rs. 1,50,000 p.a. is paid. Additionally, you can also get tax benefits under section 80C on the repayment of Rs. 1,00,000 p.a., which further reduces the tax liability by Rs. 33,660 p.a.
These deductions are available to assesses, who have taken a loan to either buy or build a house, under Section 24(b). However, interest on borrowed capital is deductible up to Rs 150,000 if the following conditions are fulfilled:
Tax deductions can be claimed on housing loan interest payments, subject to an upper limit of Rs 150,000 for a financial year.
An additional loan for extension/improvement to the same house and the individual's deductions on the existing loan are less than Rs150,000; he can claim further benefits from the additional loan taken, subject to the upper limit of Rs 150,000 for a financial year.
Tax benefits under Section 24 and deduction under section 80C of the Income Tax Act can be claimed only when the payment is made. If an individual fails to make EMI payments, he cannot claim tax benefits for the same.
According to the Income Tax Act, tax rebates can only be claimed by the loan applicant.
The interest on home loans taken for repairs, renewals or reconstruction, also qualifies for the deduction of Rs 150,000.
A husband and wife, both of whom are tax-payers with independent income sources, get tax deduction benefits,with respect to the same housing loan; to the extent of the amount of loan taken in their own respective name.
If an individual buys a house and sells it within the same year or after 3 years, and if any profit is made,then a capital gains tax liability arises on the same for which the individual is liable to pay short-term capital gains tax since the sale took place in the same year. But in case, if the sale had taken place after 3 years, then a long-term capital gains tax liability would have arisen.
On being proved that the home loan is simply an arrangement between the loan-seeker and the builder or with a third party for the purpose of claiming tax benefits,then tax benefits will not be allowed and benefits, previously claimed, will be clubbed to the income and taxed accordingly.
Tax benefits on interest on housing loans are allowable only for the original loan and according to Section 24(1), tax benefits can also be availed for a second loan taken to repay the first loan but not for subsequent loans. This means that if you have already availed of one loan to refinance the original loan and want to now avail a third loan to refinance the second loan, tax rebate on interest payments will not be permissible.
ASN Housing will be privileged to counsel you on the same. Contact us : contact@asnhousing.com and get in touch with us.