Buying a home is considered both an investment as well as a good asset. You may get a tax benefit on the principal and interest component of the EMI while the asset appreciates with time. Under section 80C, you can claim tax deduction up to 1 lakh for the principal repayment of a home loan. This is along with other investment instruments like life insurance premium, PPF, ELSS, NSC etc. However, you can avail of this benefit only after construction and possession of home.
Regarding the tax benefits on interest component of the home loan, you can claim a tax benefits on interest payment of 1.5 lakh.
In addition to the above, from April 2013, additional tax benefits on home loan interest by way of deduction of interest upto 1,00,000/- has been granted. In total, this assessment year 2015-16, you can claim a deduction of 2.5 lakh for interest on your home loan.
You can claim this deduction under the following conditions:
Disclaimer: Nothing contained herein amounts to financial / taxation advice. It is recommended that the visitor consults their personal financial / tax advisor before taking any decision based on the above and it is agreed by the visitor that, the visitor shall in no way hold Prima Terra Buildtech liable and responsible for the same.