Housing Loan In Chennai Apply 04433044488 How Do i Save Tax

Every individual holds a dream in his life of owning his house without any other person owning it with him. To accomplish this dream for those who can’t afford to have their own house on their own go for various funding options. One of the options people usually go for is a home loan for the monetary funding for their houses. Home loans are the monetary funding granted by the bank/ financial institution/ NBFC to an individual for funding his need to purchase a new home against some terms and conditions. Now, many people are aware of the charges and the different things about home loan and what all to do. Yet, some people haven’t discovered the benefits they can avail when they go for a home loan. So, here are a few of the tax benefits by the government that an individual can avail while opting for a home loans inChennai.

Now, the tax benefit on the home loan is to be claimed while the repayment process of the home loan. The repayment process is bifurcated into two different things while availing the tax benefit, i.e.

· Repayment of the principal amount

· Repayment of the interest amount

We would be covering both the areas separately to have a clearer image of the tax benefit on the home loan. The first aspect we are going to show the light upon is the repayment of the principal amount.

REPAYMENT OF THE PRINCIPAL  AMOUNT :

The law which supports the deduction of tax on the repayment of the principal amount is the Section 80C of the Income Tax Act under which it is stated that the amount paid by any individual or HUF (Hindu Undivided Family) on the principal amount of the home loan out of it 1.5 lakh rupees should be deducted for tax benefit.

The deduction on the tax is available on the payment basis irrespective of the year for which the payment has been made.  Also not to forget, the tax that has to be deduced out of the repayment of the principal amount is allowed only after the completion of the construction of the home. No deduction of the amount will be made if the construction hasn’t completed. The person who is paying the loan can avail the benefit of the tax deduction of the interest paid at the time of the construction in 5 equal installments. Also, if the person who has taken the loan sells the property in 5 years then all the above deductions will be void.