Under the Indian Income Tax Act of 1961, resident Indians are eligible for certain tax benefits on principal and interest components of a loan. Under Section 24(1), interest repayment of Rs.1,50,000/- per annum qualifies for tax saving.
An added benefit under Section 80(c) on repayment of principal amount to the extent of Rs.1,00,000/- is also available on the same loan subject to compliance with conditions stipulated in the IT Act.
To avail tax benefits most of the individuals take Home Loans even if they don't need it. Also home lan is available at the lowest interest rates compare to other loans like personal Loan, Loan against property etc.
An added benefit under Section 80(c) on repayment of principal amount to the extent of Rs.1,00,000/- is also available on the same loan subject to compliance with conditions stipulated in the IT Act.
To avail tax benefits most of the individuals take Home Loans even if they don't need it. Also home lan is available at the lowest interest rates compare to other loans like personal Loan, Loan against property etc.