Wondering about
NRI home loan tax benefit
.
Non-Resident Indians (NRIs) are eligible for several tax benefits on home loans taken in India, similar to resident Indians. These benefits can significantly reduce the financial burden associated with purchasing a property in India.
What are the Benefits of NRI Loan?
NRIs can claim a deduction of up to INR 2 lakhs per annum on the interest paid on home loans for a self-occupied property. If the property is rented out, there is no upper limit for the interest deduction.
This deduction is applicable from the year in which the construction of the property is completed.
NRIs can claim a deduction of up to INR 1.5 lakhs per annum under Section 80C for the principal repayment of the home loan. This includes payments towards stamp duty and registration fees.
The property should not be sold within five years from the end of the financial year in which possession was obtained, otherwise the deduction will be reversed.
Under Section 80C, NRIs can also claim deductions for stamp duty and registration charges up to INR 1.5 lakhs in the year these expenses are incurred.
NRIs can claim a deduction on the interest paid during the pre-construction period. This deduction can be availed in five equal installments starting from the year in which the construction is completed or the property is acquired.
An additional deduction of up to INR 50,000 per annum can be claimed under Section 80EE for interest on home loans if the loan amount is less than INR 35 lakhs and the property value is less than INR 50 lakhs.
This benefit is available if the home loan is sanctioned between April 1, 2016, and March 31, 2017.
Eligibility and Conditions
To claim these tax benefits, the home loan must be taken from a financial institution or housing finance company.
The property must be registered in the name of the NRI borrower.
The tax benefits can be claimed only if the NRI’s income is taxable in India under the Income Tax Act.
This is all about NRI
home loan tax benefit
.
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What are the NRI Home Loan Tax Benefit?
Viranch
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2024-06-27T15:42:07+00:00 2024-06-28T21:33:47+00:00Comment
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