What are the tax benefits available in regards to the housing loans?

Q: I am planning to take home loans for buying a property. Am I liable to get any tax benefits on the home loan?

David Oomen Mathews, Kochi

19th October 2011

Home Loan in Kochi

kochi

tax benefits on home loans

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Hi David..The tax benefits are seperately available for the interest component as well as principal component of the housing loans consumers. It is available for both consumers who have taken a loan to either buy or build a house. According to Income Tax Act, the upper limit of the interest payment deduction is at Rs. 1, 50,000 per annum. The amount should have been borrowed on or after April 1, 1999 to acquire or construct a residential property and it the acquisition or construction should be done within 3 years. The section 80C also allows tax benefits on principal repayments.