Tax deductions for Home loans - Need details
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Tax deductions for Home loans - Need details

kk2202 Started The Discussion:

Hi ,

Can anyone just brief me on the tax deduction facilities available for housing loan ?

Is the tax exemption for Housing Loan principal and interest payment , part of the tax exemption for investments (mutual funds, NSC etc upto 1 lakh max) or is it an additional option other than the investments .

Can someone please give the deatils for the same ?

Awaiting a positive response.

Thanks in advance,
KK2202

lavena_dsouza - Member Since: Mar 2007
Hi

Housing loan principal comes under the same bracket of Rs. 1,00,000/-
(Investments up to 1 lac in PF, VFP, PPF, Insurance Premium, Housing loan principal repayment, NSC, ELSS, etc. are deductible from the taxable income under sec 80C (there is no limit on individual items, so all 1 lac can be invested in NSC, for example))

Interest on Housing Loan:
There is an exemption for interest on housing loan. If the loan was taken before Apr 1, 1999 exemption is limited to Rs.30,000/- per year. If the loan was taken after Apr 1, 1999 exemption is limited to Rs.1,50,000/- per year if the house is self-occupied; there is no limit if the house is rented out
This exemption is available on accrual basis, which means if interest has accrued, you can claim exemption, irrespective of whether you've paid it or not

I am attaching herewith the Tax Calculator which you will get a clearer picture of the rules.

Best Regards,
Tina


Attached FilesProvided by community member lavena_dsouza. Join us to learn and grow with your peers.
File Type: xls taxcalc_2008_2__190.xls (178.5 KB, 1062 views)
kk2202 - Member Since: Oct 2007
Hi Lavena ,

Thank you very much for the details. Thanks a lot. I still have some doubts.

U have mentioned that "there is no limit for the interest amount if the house is rented". what does it imply ? Does it mean there is no max limit (1.5L) or there is no deduction for that ? Can you please make that clear ?

thanks in advance,
KK

lavena_dsouza - Member Since: Mar 2007
Hi,

Sorry ! I missed with the statement.

Maximum limit of interest rate for house loan: If loan taken before Apr 1, 1999 exemption is limited to Rs.30,000/- per year. If loan taken after Apr 1, 1999 exemption is limited to Rs.1,50,000/- per year

Interest Exemption is 1,50,000/- max

If the house is rented, there is complete different computation of House Property Income, which you will have to co-ordinate with a CA. But for calculation of salary we can give a maximum exemption of Rs. 1,50,000/- on interest

Best Regards,
Tina

kk2202 - Member Since: Oct 2007
Hi Lavena,

I think i got the point. Thank you very much for providing me with those details.

Does self-occuppied mean that i have to reside there if loan is taken in my name or is it the same if only my parents stay there ?

thanks & regards,
KK

lavena_dsouza - Member Since: Mar 2007
Dear KK

If your parents are staying in your home then there are two possibility:

1) The house loan should be in your name. If you are NOT staying there and your parents are staying that means you are staying in a rental home. But you can claim either HRA or home loan, you cannot claim both.

2) Secondly if you have 2 home loans you can claim anyone of your choice for tax exemption but not both.

Best Regards,
Tina

kk2202 - Member Since: Oct 2007
Its great to hear from you,Lavena. Thank you very much for making it clear to me.its really great to see your patient and timely responses. thanks a lot. Regards, anisha

jhapriyank - Member Since: Dec 2007
Hi ,

Can you brief me on the tax deduction facilities available for educational loan ?

Is the tax exemption for educational Loan principal and interest payment , part of the tax exemption for investments (mutual funds, NSC etc upto 1 lakh max) or is it an additional option other than the investments .

Can someone please give the deatils for the same ?

Awaiting a positive response.

Thanks in advance,
Priyank

NARAYAN1984 - Member Since: Jun 2008
can you tell me pleasethe maximum benefit taken in housing loan is 150000/-please tell me what about the interest

bsabale - Member Since: Dec 2008
Hi ,

Can anyone just brief me on the tax deduction facilities available for housing loan ?

Is the tax exemption for Housing Loan interest payment , part of the tax exemption for investments (mutual funds, NSC etc upto 1 lakh max) or is it an additional option other than the investments . if no then how tax exemption up 1.5L. only interest when loan started after 1999.
that means principal amount count in investment (max 1.0 L) and interest (max1.5L) additional. exemption. is it true.

Can someone please give the deatils for the same ?

Awaiting a positive response.

Thanks in advance,



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