Monday, 16 December 2013

Additional Tax Benefit for first time Home Buyer

If you are planning for buying your 1st house in this financial year you can claim extra benefit on your home loan. First time individual home buyers can get tax deduction on interest of home loan, under newly inserted section 80EE of the Income Tax Act, applicable for assessment year 2014-15. This is in addition to tax rebate on interest payment of home loan, under section 24. Now you can claim total Interest deduction of Rs. 2.50 lakhs on your first self-occupied property.

Eligibility for 80EE rebate:

This rebate on home loan interest is applicable only for home loans satisfying the following conditions:
1. Loan has been sanctioned for house by any financial institutions from 01 April, 2013 to 31 March, 2014.
2. Loan amount sanctioned for acquisitions house property does not exceed 25 Lacs.
3. There are no other house property on the date of sanction housing loan to assessee.
4. Value of house property not exceed of Rs. 40 lacs.
5. Buyer of house property is the first time buyer.
The amount claimed under 80EE cannot be claimed for tax rebate under any other sections in any year.

How to get 80EE tax benefit:

You can either produce certificate from your lender to the HR or get deduction on salary TDS or you can deduct the amount from total income while filing income tax return.

4 comments:

  1. I have been visiting various blogs for Best Home loan. I have found your blog to be quite useful. Keep updating your blog with valuable information... Regards

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  3. One thing which is really important before getting a loan is the reliability of that firm and secondly terms and conditions of that firm should be easy. Their conditions should not lead to any sort of trap. Recently my friend got his loan from private firm r2dcredit.com.sg. His experience went really well and he told me that for customer ease they have made less rules for lending money.

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  4. Apply for home loan Before there are two steps that you need to go with one check your credit score and apply for home loan. The next thing is if you are new then you can use home loan emi calculator to know the emi and other details , suppose if you are already had a loan and would like to know your present interest rate and compare with other banks then you can use refinance calculator, home loan checkup and home loan eligibility calculator.

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