Home loan tax benefit India 2013 – The benefit of taking a home loan is to ensure that you have a home which is your asset and if you don’t have the entire amount to pay- take a loan on it.
New Tax benefits on Home loan 2013: The budget has brought good news for a New Home loan customers. Home loans upto Rs 25 lac will be allowed additional deduction of interest of 1 lac. This will mean that the customers who are running home loans upto 25 lac can save on tax and will have more net income to hold on to.
For most customers owing a home is a big thing and it has an added advantage.
That it saves us Income tax
The Income tax benefit are divided into two parts
- Principal repayment under section 80c – Principal can be claimed up to the maximum of Rs. 100,000 under Section 80C. This is subject to the maximum level of Rs 100,000 across all 80C investments.
- Home loan interest repayment under Section 24 -Interest can be claimed as a deduction under Section 24. You can claim up to Rs. 150,000 or the actual interest repaid whichever is lower.
This is only allowed when you live in that house.
So that means if you are in above 5 lac income bracket, you can save 50000 as income tax as your net income will reduce by that much plus you own an asset.
So if you are above 8-10 lac salaried and living on rent, you are missing a big opportunity of saving tax and building along term asset.
Benefits of having a co- borrower if he/she is earning for Income Tax.
If both husband and wife are working and you are opting for a home loan as a co-borrower- both of you are eligible for tax exemption for your share of the EMI paid. For claiming income tax deduction, the EMI amount is divided into the principal and interest components. The repayment of the principal amount of loan is claimed as a deduction under section 80C of the Income Tax Act up to a maximum amount of Rs. 1lakh individually by each co-owner.
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