Did you know that taking out a house loan can help you to get tax exemptions? Here you will know all the tax benefits A home loan borrower can also get benefits of home loan interest tax exemption under construction property. Following is a list of useful ways to save income tax on home loan:
  • Section 24

With the help of Section 24, anyone can save themselves from taxing the home loan acquired, from the bank. The deduction of interest rates can go up to Rs. 2 Lakh in each year, provided the fact that the person claiming tax exemption (lower repayment amount) is the owner of the property and isn't going to rent it.

The section is applicable only if the construction gets completed within 5years from the original date of the claim.

  • Section 80

Under this, an individual can claim a maximum amount of Rs. 1.5 in a year. It is applicable for those individuals who own the property and is also available for those who are renting it out.

To get hold of home loan tax benefit completely, one shouldn't sell the property in the first 5years of property acquisition. Other than providing relief from tax charges, an individual can claim additional expenses such as stamp duty & registration fees.

  • Section 80 EE

If an individual's property value is less than Rs. 50 Lakh and the loan amount received is Rs. 35 between 1st week of April 2016 and last day of March 2017 - Then, he is eligible to claim the tax relief under this section.

  • Joint home loan

The solution to how to get, home loan with tax benefits is quite simple by opting for the loan-amount jointly. In such cases, both the applicant can claim for deduction in interest up to Rs. 2 Lakh and Rs. 1.5 Lakh principal reduction.