The principal value is roofed underneath Section 80C and includes a limit of Rs. 1 Lakh. This can be solely on the market to you if you reside in the house for which you got the loan. This simply means that this exemption cannot be valid for under construction house or for a house in which you are not living. However, it offers you an exception in case you are working in a completely different town. In case you are employed in a totally different area then you can claim this exemption on this principal value of your home underneath 80C.
Section 24: Tax benefit of the interest rate
The interest on a home loan is treated in a different vogue, and Section 24 deals with tax factor on the repayment of a home loan. R’s. 1, 50,000 is the maximum limit underneath this section and there is no need to compulsory live in the house for claiming these benefits. The payment of interest will be subtracted from your taxable income and as a result of which your tax liability will be reduced. There is only limited to the sum of money that is Rs.1, 50,000 and has no sort of other limitations such as the numbers and location of houses you are claiming for.
Some special conditions are ameliorated such as the disbursement of getting loan primal to construction of the house and the pre-EMI interest and the RAAG has discussed all these aspects in his post about the tax benefits of a home loan.
- Tax Slabs INDIA After Budget 2012
- Guidelines On Online Application For New PAN (Form 49A)
- Steps In E-filing Tax Returns
There is a limit to every section regarding the loan for example section 80C has limitation of one lake. The home loan is treated in different ways. The maximum limit of the home loan is 1,50,000rs. Some special conditions are also applied along with them.