Home Loan: A way to reduce your taxable income
By Joseph Samson
Print    Email    RSS   

Home Loan in India is the best option for an individual who is planning to buy a property. Besides helping you buy a house at easy installments it also provides several benefits under the Income Tax Act. These sops are the major reason making a home loan different from other loan products.

Interest paid on housing loan

The Income Tax Act offers incentives to attract people to invest in housing property. Section 24 of the Income Tax Act makes one eligible for deduction on interest paid on a housing loan. The interest is allowed as a deduction on an accrual basis, i.e., on due basis, even if it is not actually paid in cash during the year. The interest should be payable on borrowed capital and not on notional capital. In order to claim the deduction, an individual should provide a certificate from the lender to whom the interest is payable on the capital borrowed, specifying the amount of interest payable.

All types of home loans including for the acquisition of property, construction of property, or repair of property are eligible for interest deduction. In fact interest paid on a fresh loan taken to repay another existing loan is also allowed for tax sops. However if a third loan is taken to refinance the second loan, tax rebate on interest payments will not be permissible.

As per the Income Tax Act, the maximum amount eligible for deduction is Rs 1.5 lakhs provided the loan is taken on or after April 1st, 1999 for acquisition or construction. Where as, if the money is borrowed before April 1st, 1999, the deduction amount is restricted to Rs 30,000. Also the lender needs to certify that interest is payable for the loan advanced for acquisition or construction of the house. Besides the purpose for which the loan is taken - acquisition or construction - should have been completed within three years from the end of the financial year in which the capital is borrowed.

The interest paid on housing loan is allowed as a deduction from the net annual value of the house property. Net annual value of a house is derived after deducting municipal taxes actually paid from the gross annual value of the house property. The gross annual value is calculated depending on the use of the house property. If the property is let out for rental purpose, then the fair rent value is considered to be the gross annual value. On the other hand if the person is using the property for his own residential purpose then there is no income liable to tax as ‘income from house property'.

Page  | 123 |  
(Comments Posted : 191) Post Your Comments
1. [url=]Viagra Generic Cost[/url]
Acquiring an apple ipad is a terrific way to raise any kind of firm which you have. It is a great way to generate business since it reveals that your small business is present day and modern. If you are searching for this sort of customer, then grab an apple ipad.
[url=]Prix Viagra Maroc[/url]
In case you have arthritis, calculate your soreness. Use a level of one to ten to permit yourself learn how hard a new job is so that you can accomplish. Take a dimension before the process, and once more soon after. This will let you know how that job is effecting the body, plus your life.
[url=]Acquisto Levitra In Contrassegno[/url]
When you can afford to pay for it, make an effort to try taking a little dancing classes just before the wedding. Points could get really frantic right before the celebration which is nice to get a almost no time put aside where you may make a move together. Additionally, the party instruction well allow you to really feel much more comfortable on your wedding event.
[url=]Cialis En Ligne Livraison Rapide[/url]
PhilipGew (Posted: Feb 14, 2018)
2. meakkci

[url=]Sac Guess Homme Bandouliere[/url]
[url=änner-133.html]Gucci Reisetasche Männer[/url]
[url=]Prada Handbag Online[/url]
[url=]Hermes Halzan 22[/url]
[url=]Burberry Borsa Nera[/url]
ThomasMl (Posted: Feb 5, 2018)
3.]Achat Viagra Generique France[/url]
Regardless of whether you're not heading an extensive length apart in your camping getaway, or perhaps if you're starting common territory, generally remain in contact with good friends, family members or neighborhood friends. Explain to an individual in which your vacation will probably be, and exactly how long you'll be gone. And when you can, sign in frequently by using a cellphone.]Viagra 30 Ch[/url]
Think about acquiring a credit rating counselor to assist you with the credit history restoration strategies. Check out the firm before you sign track of those to make certain they are legitimate and reliable. An effective organization are able to get the monthly bills in collection and allow you to get rid of debt in a few years.]hygetropin 200iu review[/url]
Dress yourself in layers. Many excellent fishing journeys may last the whole day, and also on reduced outings, the temp can transform considerably. By putting on numerous light layers of garments, you will give yourself a lot of choices. With many slight changes, you could make oneself comfy, regardless of what the present temperature is.]Jintropin 10iu[/url]
RobertFal (Posted: Dec 15, 2017)
Show All Comments
 Select a product:

 Select a product:

What should you do if interest rates are...
Admissible deductions under Section 80C
Factors affecting eligibility for home loans
Factors to Evaluate before opting for Home...
Bank of Maharashtra reduces home loan rates

PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive