First time home buyers are often confused about income tax benefits that they can avail of on home loan on buying their first residential property. Read on and find for yourself the benefits that first time home buyers have in India.
Benefits Under Section 80C
If you are a first time home buyer then you can claim a tax benefit up to 1.5 lakh under the home loan principal and stamp duty component of section 80C of the Income Tax Act. However, to avail of this advantage, the buyer mustn’t sell his property within five years of purchase.
Tax Rebate Under Section 24
Section 24 allows first time home buyers to claim tax exemption on up to 2 lakh income under the home loan interest payment component. However, it must not be forgotten that to avail of this tax exemption the income tax assessee or his family members must be residing in the house he wants to purchase.
Tax Advantage Under Section 80EEA
First time home buyers can claim a tax benefit of up to Rs 1.5 lakh under Section 80EEA. However, for that to happen the stamp duty value of the residential property must be up to 45 lakh. Moreover, it is also important for the home loan approval to be dated from 1st April 2019 to 31st March 2022. Besides, it is also important for the assessee to not own any residential property till sanction of loan, he should also not claim any amount under income tax section 80EE and the loan should be borrowed only from a financial institution.
If you are a first time home buyer then you must have an idea about different sections of income tax to claim the benefits on home loan. No more confusion, no more puzzles, a neat saving of 5 Lakh is on offer.
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