Home Loan Calculator: Four benefits that you would miss in new income tax slabs
Home Loan Calculator: A home loan borrower in income tax slabs 2019-20 can claim tax rebate available under Section 80C, Section 24b and Section 80EEA.
Home Loan Calculator: In the wake of new income tax slabs for FY20-21, income taxpayers are confused whether they should switch to the new income tax slabs 2020 or they should stick to the same income tax slab for FY2019-20. According to the Money Bill 2020, one who has home loan EMI to pay, then it's better to remain in the income tax slabs for the FY2019-20 than to switch at new income tax slabs. According to the tax and investment experts, an income taxpayer can claim home loan tax rebate under Section 80C, Section 24b and Section 80EEA. They are of the opinion that there are four home loan tax benefits that a home loan borrower must not forget to claim during Income Tax Return (ITR) filing if they are in the old income tax slabs.
Section 80C of Income Tax Act
Speaking on the income tax benefit that a home loan borrower can claim under Section 80C of the Income Tax Act Jitendra Solanki, a SEBI registered tax and investment expert said, "Under Section 80C, one can claim income tax exemption on up to Rs 1.5 lakh on home loan principal repayment in a particular year. This rebate is available on home construction as well but the property has to be completed within five years."
See Zee Business Live TV streaming below:
Solanki said that while buying a home, one pays stamp duty for registration as well. The amount paid on stamp duty for property registration is also exempted from income tax outgo. However, these charges can be claimed within the overall limit of Rs 1.5 lakh.
Income Tax benefit under Section 24b
This section allows home loan borrowers to claim income tax exemption on home loan interest repayment. Elaborating upon the income tax exemption under Section 24b Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "Ùnder Section 24b of the Income Tax Act, a home loan borrower can claim tax exemption up to Rs 2 lakh on home loan interest repayment. This limit includes both pre-construction and post-construction period."
Income Tax deduction under Section 80EEA
The budget 2019 provided a big boost to the ‘Housing for All’ initiative by providing an additional tax deduction of Rs 1.5 lakh on home loan interest payment on home loans availed between 1st April 2019 and 31st March 2020. In order to qualify for tax deduction under section 80EEA, the value of housing property has been capped at Rs 45 lakh. Remember, this benefit can only be availed by the first time home buyers only.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.