Tax Benefits on Home Loan- 2021

To make property purchases easy for home buyers, the government has come up with many tax rebates, especially on home loans.

If you purchase a property with the help of home loans, you can enjoy various deductions on your income tax liabilities.

Here are some home loan benefits under various sections of the Income Tax Act 1961 that homebuyers can take into consideration.

Tax deductions on home loan principal and stamp duty

  1. Section 80C for Income Tax law
  2. Tax rebate up to Rs. 1.50 lakhs per annum
  3. Tax rebate for senior citizens up to Rs. 2 lakhs per annum

Tax deductions on home loan interest

  1. Section 24, Section 80EE, Section 80EEA, relevant Income Tax laws
  2. Tax rebate up to Rs. 3.50 lakhs per annum
  3. Tax rebate for senior citizens up to Rs. 4.50 lakhs per annum

List of the various sections of the Income Tax law for home loan deductions

  1. Section 80C
  2. Section 24
  3. Section 80EE
  4. Section 80EEA

 

Home loans based on current salaries

Monthly salary Eligibility Loan tenure Loan interest Payable EMI
Rs 20,000 Rs 9,56,434 20 8% Rs 8,000
Rs 25,000 Rs 11,95,543 20 8% Rs 10,000
Rs 30,000 Rs 16,13,983 20 8% Rs 13,500
Rs 35,000 Rs 18,82,980 20 8% Rs 15,750
Rs 40,000 Rs 21,51,977 20 8% Rs 18,000
Rs 45,000 Rs 25,20,976 20 8% Rs 20,250
Rs 50,000 Rs 26,89,972 20 8% Rs 22,500
Rs 55,000; Rs 32,87,743 20 8% Rs 27,500
Rs 60,000 Rs 35,86,629 20 8% Rs 30,000
Rs 65,000 Rs 38,85,514 20 8% Rs 32,500
Rs 70,000 Rs 41,84,400 20 8% Rs 35,000
Rs 75,000 Rs 44,83,286 20 8% Rs 37,500
Rs 80,000 Rs 47,82,172 20 8% Rs 40,000
Rs 85,000 Rs 50,81,057 20 8% Rs 42,500
Rs 90,000 Rs 53,79,943 20 8% Rs 45,000
Rs 95,000 Rs 56,78,829 20 8% Rs 47,500
Rs 1,00,000 Rs 59,77,715 20 8% Rs 50,000

The benefits under Section 80EE and 80EEA can be claimed only by first-time home buyers. There will also be added benefits if the property is jointly owned.

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