Loans Homepage

Information on loans and financial news.

Hot Links
Most Viewed
Personal Importance
Tips: Secure Loans
Handle Personal Loans
Cash Advance Loans
Home v/s Personal
Top up Loans
Make Dream Home
Loan forms
Loan Applications
eBook Credit Cards
Free Downloads
Accounts & Loans
Loan Hubs
HDFC Loans
Centurion Bank
Citibank Loans
Utibank Loans
SBI Loans
Tax benefits on home loans
Home loans offer tax benefits. However, there are a number of joint-ownership situations where some confusion prevails about the availability of these tax benefits. Here are some clarifications ...

If I take a home loan, do I get any tax exemption on interest paid on the loan?
Interest paid on a home loan is tax deductible under section 24 as an expense under the income head ‘Income from House Property’.

Whom can I take a home loan from to be eligible for the tax exemption?
You can take a loan from a housing finance company, a bank or any person to be eligible for tax deduction on interest.

How much tax deduction is available for interest paid for a home loan?
If you have taken a home loan after 1 April 1999 and your home acquisition or construction is completed within 3 years from the end of the financial year in which you took the loan, interest on the loan up to Rs.1.5 lakhs is available for tax deduction. In other cases, the tax deduction for interest paid on the home loan will be restricted to Rs.30,000.

Do I get any tax benefit for principal amount of home loan repaid?
Principal amount repaid on a home loan is eligible for tax rebate under section 88 up to Rs.20,000. The actual amount of tax rebate depends on your overall income level.
My wife and I own a property in joint names. We have purchased the property by taking a home loan. The EMIs are paid from my wife’s account.

Can I avail of the tax benefit under section 24 and 88 on interest paid and principal repaid, respectively?
In case of joint ownership of property, each co-owner shall be charged with his share of income from house property and each one can also claim the tax benefits available to the extent of his share. The EMIs are paid from your wife’s account. To the extent of your share, such contribution is a gift to you from your wife. You would be eligible to claim the tax benefit under sections 24 on interest paid and under section 88 for the principal repaid to the extent of your share in the property.

My wife and I own a property in joint names. We have purchased the property by taking a home loan. My adult son is paying the EMIs on our behalf. Can I avail of tax benefits under section 24 and 88 on interest paid and principal repaid?
You shall get the tax benefits under section 24 and 88 to the extent of your share in property.
To get the rebate under section 88, it is not necessary that the payment shall be made out of one’s income chargeable to tax. Even if your son is paying the EMIs, you shall get the relief under section 88 in respect of principal repaid in the EMI.

So far as deduction towards payment of interest under section 24 is concerned, both you and your wife shall get benefit of deduction under section 24 if your shares are definite and ascertainable.

I have purchased a property in joint names of my adult son and my wife. The property was purchased by taking a home loan. I am paying the EMIs towards repayment of the loan and payment of interest. Can my son claim tax deduction for interest paid and principal repaid? Can I claim the tax deduction? Can we both claim the tax deduction for the same amount?
You are paying the EMIs. To the extent of your son’s share in the property, EMI shall be a gift to him, which shall be exempt in his hand. He shall be eligible to get tax benefit under section 24 for interest payment and section 88 for repayment of principle. You will get the tax benefit to the extent of your share. Thus both you and your son can claim the tax benefit to the extent of your respective shares.
posted by Joby @ 5:48 PM   3 comments
  • At 6:35 PM, Blogger Earn A LifeTime of Income From Anywhere! saidâ?¦

    We're conducting some research on various educational sites and ran across this page. Even though it wasn't "exactly" what we were looking for, we think your readers might be interested in reading our Education Guides home page since they help with ones educational pursuits. As you know, the more information people have before spending their hard earned money -- the better. Sorry for the self promotion, just trying to get the word out while looking for sites to review. On to the next -- thanks! Visit us at Education

  • At 9:14 PM, Blogger Aleena saidâ?¦

    This seems to be a great site which offers Home Loan, Loan Modification, Legal Debt Solutions, Loan Modification Services, Bankruptcy Attorney, Debt Negotiation Services, Loan Modification Process, loan modification testimonials, legal debt solutions, legal debt solutions law firm etc. and i would surely like to try their service...i had been relying on earlier and they too offered good stuff.

  • At 1:11 PM, Blogger Whitney09 saidâ?¦

    Personal loan plans are also known as unsecured debt as the sum of money is small and not collateralized with an asset. In other words, the lender relies on the borrower's promise to pay it back. Due to the risk involved, the interest is usually higher and the repayment term is relatively shorter.


Post a Comment
<< Home
Google Search

Previous Post
Powered By