How do I calculate my Home Loan Tax Benefit?
You can use a home loan tax benefit calculator to know your tax savings and net liability keeping in mind your gross annual income, home loan payments and total deductions that you can claim.
What are the tax benefits of home loan?
Home loan tax benefit 2021 Home buyers enjoy income tax benefits on both, the principal and interest component of the home loan under various sections of the Income Tax Act 1961. Deductions allowed on home loan principal Section 80C Deduction
What is the maximum housing loan interest amount for income tax?
After enactment of Finance Act 2014, maximum housing loan interest amount (Interest on house property) which can be deducted from the income of a tax payer under Section 24 of the Income Tax Act in respect of self occupied house, is Rs. 2 Lakhs (Rs. 2,00,000).
What is the tax deduction for interest paid on home loan?
Actual annual value of Interest paid on Home loan or Rs. 2,00,000 whichever is maximum As per Finance Act 2016, the tax payer is entitled to claim additional deduction of Rs. 50,000 under Section 80 EE if you are a first time home buyern interest. This deduction is over and above the Rs 2 lakhs limit under section 24 of the income tax act.