The home loans tax deductions you must know of, while preparing income tax returns during income tax filing . Here’s a low down.
Edited transcripts Udayan Ray: Welcome to FundooMoney web series on tax filing. We are discussing various things you need to keep in mind while filing for taxes.
With me is eminent financial expert, Mr Swami Saran Sharma. In this episode, we are discussing various things people need to keep in mind with respect to home loans while filing for taxes.
Swami, one of the things I wanted to check out with you is what kind of tax deductions one gets when one has taken a home loan last year and what a person needs to record in one’s tax return?
Swami Saran Sharma: Predominantly, there are two deductions available if you take loan to construct or purchase a house in any previous year. One is towards the return of principal amount of the loan which qualifies under Section 80C. The other is the interest part which we pay to the bank during that financial year. The actual amount paid qualifies for deduction under Section 24.
The deduction under Section 80C is within the available limit of Rs 1.5 lakh alongside other investments. For the interest part, you get a deduction of Rs 2 lakh, if you pay the interest for a self-occupied property. In case, it is rented out, there is no limit for qualifying that amount. It can be Rs 3 lakh, 4 lakh or Rs 5 lakh also.
Udayan Ray: That’s a lot of useful information. I am sure a lot of people would be interested in knowing more. They can check out our social media platforms and other areas that we are present, and our website www.fundoomoney.com
