The government of India takes many steps to encourage investment in real estate especially residential properties and there are many rebates, subsidies and offers which are introduced. If you are wondering how much home loan interest is exempt from tax then you must know about a few details right away. I am going to share the same with you in this answer so stick along till the end and if you like my answer do hit that thumbs up button :)
How much tax exemption for home loan?The tax exemption or deduction is available on the home loans taken for the purchase of a house or for an under construction property as per Income Tax authorities. You must note that you can claim exemption or deduction in tax on the interest paid on home loan. Here is what you need to know:
You can claim tax exemption of up to Rs. 2 lakh under section 24
The limit is same as above for a self occupied house
However, there is no upper limit set for claiming interest for a property which is let out
If you are claiming loss on house property then the limit is Rs. 2 lakhs only
You can also claim deduction for principal repayment under section 80C for up to Rs. 1.5 lakhs. There is a condition attached to it that the property must not be sold before five years of purchasing the property
If you have paid the stamp duty and registration charges in a financial year, you can claim exemption from taxes on that as well for the particular year. The maximum exemption limit is set at Rs. 1.5 lakhs
I hope this clarifies your doubts around how much interest on housing loan is exempt from income tax.
Read more: How many home loans are eligible for tax exemption How to save tax on home loans What is let out property in income taxI hope you liked my answer on how much home loan interest is exempt from tax.
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How much home loan interest is exempt from tax?
Sharad
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2021-11-30T14:59:55+00:00 2022-01-05T17:46:26+00:00Comment
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