Every people want to save something for their future, the growing needs of the human needs more money to fulfill their needs, Every people want to have a own house, but due to lack of money they go for home loans, they have to pay atleast 9.6% interest per annum in most of the banks, other than that they need to pay income tax to the Government, it burdens the family. So the government given some exemption for home loan paying individuals income tax. The Home loan paying individuals can get Maximum Tax benefit under Home Loan scheme. As per Indian IT Rules, the current applicable exemption u/s 24 is `1.5 lacs for the interest amount paid in a financial year and up to ` 1 lac for the Principal amount repaid in the same year. Thus up to `2.5 lacs is tax exempt, helping you save up to `70,000 tax annually.
Deductions For FY ending March 31, 2014
Deduction on home loan interest under Section 24 Rs. 1,50,000
Deduction on principal repayment within the overall limit of Section 80C Rs. 1,00,000
For FY ending March 31, 2015
Deduction on home loan interest under Section 24 -Rs. 2,00,000
Deduction on principal repayment within the overall limit of Section 80C - Rs. 1,50,000
For more details contact your CA or ask the bank officials.
Deductions For FY ending March 31, 2014
Deduction on home loan interest under Section 24 Rs. 1,50,000
Deduction on principal repayment within the overall limit of Section 80C Rs. 1,00,000
For FY ending March 31, 2015
Deduction on home loan interest under Section 24 -Rs. 2,00,000
Deduction on principal repayment within the overall limit of Section 80C - Rs. 1,50,000
For more details contact your CA or ask the bank officials.