To claim the home loan tax benefit under this section, the following conditions need to be met:-. The loan should be less than or equal to Rs.35 lakhs. Also, the property’s value should not exceed Rs. 50 lakh. On the date the loan is sanctioned, the individual should be a first-time house owner.
The tax benefits on filing ITR for home loan under the various provisions of Income Tax are as under: TAX BENEFITS ON ITR FILING FOR HOME LOAN: SECTION 24: All homebuyers can claim deduction towards the home loan interest with a limit of Rs. 2 lakh. In the case of let out property, i.e., the interest is waived off. SECTION 80C:
Below are the steps to claim your tax deduction. Step 1: Calculate the tax deduction to be claimed. Step 2: Ensure that the house is in your name or you are the co-borrower of the loan. Step 3: Submit your home loan interest certificate to your employer to adjust the tax deductible at source. Every homeowner's financial circumstances are unique, so the impact of tax benefits may vary depending on factors such as income, mortgage size and the amount of interest paid. Understanding these benefits helps you see your mortgage not just as a debt but also as a tool to optimize your finances.

Section 80C allows the deduction for the amount paid towards the principal repayment of the home loan taken from the specified financial institutions. This deduction is allowed under the overall umbrella limit of Rs.1.5 lakh of Section 80C. There is no threshold limit for claiming principal repayment of home loans; hence, any principal payment

Increase in tax deduction limit on home loan interest under Section 24 (b) Currently, homebuyers can claim an income tax deduction on the interest paid on their home loan under Section 24 (b) of the Income-tax Act, 1961. The maximum amount of deduction that can be claimed is Rs 2 lakh per financial year for a self-occupied property.
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home loan benefits in income tax