Tax Deductions For Home Loans - Need Details - XLS Download

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

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

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

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

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

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

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

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

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,

Hi,
For following 2 cases, one might need to arrange for money:
1. Down payment (10-15% of property value, as fixed by Bank)
2. If the builder demands some money in cash
For any of the above cases, one might need to avail some other loan. Can tax deduction be claimed for this kind of loan?
Regards,
Vinayak Bhat