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 : 214) Post Your Comments
1. [url=]Kamagra Gel Ireland[/url]
If you suffer from a candida albicans and are seeking a natural home cure, take into account Green tea Tree Essential oil. Tea Shrub Essential oil has been used to treat a lot of infection and throughout the years, it really is still probably the most widely used solutions for the yeast infection. Attempt to add a fall of fairly sweet almond gas to help you ease several of the results of the Teas Shrub Oils soon after application.
[url=]Kamagra Oral Jelly Pas Cher[/url]
Like those insurance ads say -- daily life comes to you speedy. Properly, it is by even faster. Before very long, generations slide apart and you also rarely understand oneself any longer. Ageing can definitely can come like a shock to some people that don't know how to approach getting older. Follow this advice which can help you out.
[url=]Cialis Prezzo Farmacia Italia[/url]
Be sure your web pages aren't a long time. You just get one probability to make a initial impact, and if your most important content is "below the retract," it might not also be read. For those who have lots of associated content material that needs to stay with each other, think about breaking up it into segments and including links to every area.
[url=]Hgh 75 Sqcx Prezzo[/url]
Curtisbig (Posted: Apr 2, 2018)
2. buy kamagra oral jelly usa
kamagra4uk review
kamagra 100mg oral jelly suppliers indianapolis indiana
kamagra 100mg tablets review
kamagra gold 100mg reviews
buy kamagra 100mg (Posted: Mar 31, 2018)
3. kamagra jelly
kamagra jelly 100mg
kamagra oral jelly 100mg reviews
buy kamagra 100mg
kamagra dosage
direct kamagra uk
kamagra store reviews (Posted: Mar 30, 2018)
Show All Comments
 Select a product:

 Select a product:

How to increase one’s Home Loan Eligibility
If the interest rate is same, how do you...
Joint Home Loan: A wise decision for a...
Manage your loans, avoid recovery agents
An insight into the era of teaser loans

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