Claim Tax benefit from Home Loan

You can get tax benefit from your home loan this year. The rates of interest being slashed on loans and there are different attractive schemes being offered by many banks and leading institutions, there are so many offers for buying a new home at this time.

Processing Fee: Claim tax deduction on that: There are many miscellaneous expenses before getting a home loan. The processing fee that are you paid for home loan, that fee is eligible for a tax deduction under  section 24 along with the interest paid also on home loan.

Missed the EMI payment: If you are missed or forgotten to pay any EMIs of home loan, you are still be eligible for claim tax deduction on the interest for the whole year.

No tax benefits on selling house and buy new one within 5 years: If you are planned to sell your old house and purchase a new house in next 5 years or from the date of taking the loan, you can forgot your tax benefits. The tax benefit is reversed and ready for the pay extra tax on your annual taxable income.

Source of fund for purchase a house from a relative loan: If you are taken a loan from a friend or relative to construct or purchase a property and are wondering about that if you can claim tax benefits, don’t worry you can claim it. As far as taxes go, the sources of the loan are not important. Its only counts that utilization of money for. Can you convince the tax authorities that the money you got from your friend was used to buy your house?  Before considering this point contact the tax professional or chartered accountant then, you are sorted.

Co-owner of property and borrower of loan: If you own a property and are paying the monthly EMIs for the loan that is in your name, then you can claim tax benefits on the home loan. Remember, you need to be both the owner and the borrower of the loan to enjoy the tax benefits.

Claim tax benefit for interest part in per-constructed property: It is widely known that you can start claiming tax benefits on your home loan only after the construction on house is completed and you take the possession of the property.

You can also claim the tax deductions on the installments that you paid while the property was being constructed and also allowed to claim deductions on the interest paid over a period of 5 years from the year of possession.