Tax Savings On Home Loan: One month of the new financial year has passed. Even though it is still late for the end of the financial year, experts advise taking tax saving measures from now…
Tax Savings On Home Loan: The season of filing income tax returns has gained momentum. More than eight lakh income tax returns have been filed so far. These returns are being filed for the financial year 2023-24, but from now on people have started taking measures to save tax for the current financial year i.e. 2024-25. Experts also suggest that taxpayers should prepare in advance.
Double tax saving tips
If you also come under the ambit of income tax and are looking for ways to save tax, then today we are going to help you. Today we will tell you one such solution, which is not unique, but can prove helpful in doubling your tax saving.
Buying your own home is one of the biggest financial decisions of everyone’s life. This proves beneficial in many respects. First of all, one gets a feeling of mental peace and security from one’s home. Many people also buy houses to invest. One of its specialties is that you can save income tax by buying a house.
What do the income tax rules say?
According to the Income Tax Act, deduction up to Rs 1.5 lakh can be claimed under Section 80C on the repayment of principal amount of home loan. At the same time, under Section 24(B) of the Income Tax Act, deduction of up to Rs 2 lakh can be claimed on home loan interest. A person buying a house by taking loan can get tax exemption on earning up to Rs 3.5 lakh in a financial year.
Earning of Rs 7 lakh will be tax free
You can also double this tax benefit. That is, by taking a home loan, you can make your income up to Rs 7 lakh tax free in a year. If you take a joint home loan with your wife, then in this situation both of you can claim separate tax benefits. In such a case, the combined limit will be Rs 3 lakh under section 80C and Rs 4 lakh under section 24(B). That means a total deduction of Rs 7 lakh will be available.
Be sure to keep this in mind
In this way, to avail the double tax benefit, it is important to keep some things in mind. The co-borrower of the home loan should also be a co-owner of the property purchased. If this is not the case, he cannot avail tax benefits. In such cases, even after taking part in paying the EMI, he is not able to get the benefits of tax saving.
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