Saving on income tax takes lot of planning and thoughtful investment. And so as to achieve maximum benefits from the existing income tax rules and save tax, it is important that you take the help of some expert. These experts guide you properly regarding reducing the tax liability and also show you myriad ways of saving it. According to taxation professionals, real estate has come up as one of the better options in past couple of years.
There are multiple benefits of investing in home or property. You need a home for living, so getting a home loan for yourself is a must. You can also take property loan for buying second home if you can pay the EMI. And the most important benefit of investing in property is getting tax benefits.
The latest home loan income tax benefits according to 2013 budget are:
- If new loans for maximum 25 lakh are taken for buying the first homes then, the interest payments of Rs.2.5 lakh are eligible for tax deduction.
- An individual who takes loan for purchasing home loan of Rs.25 lakh in the term in between 1st April 2013 to 31st March 2014 of maximum Rs.25 lakh can avail the additional benefit of tax deduction of interest maximum up to Rs. 1 lakh. This is the revised deduction amount than last year which was earlier 1.5 lakh.
- If your interest component is found to be less than the given deduction limit then, you can claim for the balance in the upcoming financial year.
Income tax benefits on home loan as per 2013 budget in nutshell
The proposal by the Indian Finance Minister, P. Chidambaram offering tax breaks on the home loans taken by the buyers of home loan for the first time has come up a silver lining in the otherwise gloomy budget presentation. But on a closer look, there are many reasons as to why you should feel dampened.
Firstly, the deduction claim is only for the loan amount below Rs. 25 Lakh. Secondly only those loan takers who acquire loan in the duration in between 1st April 2013 t0 31st March 2014 can avail this benefit. The additional tax deduction of Rs. 1 lakh under section 80 EE has been considered a favorable move. But it also has its hiccups. Only those individuals who have purchased a property worth below Rs. 40 lakh can get this deduction benefit. Also this benefit can be availed only if it is for one time and can give maximum saving benefit of Rs. 30, 0000 to 31,000.