The most important criterion you have to keep in a mind during taking the home loan that is the tax gain on the home loan. Dividing a repayment of the hoe loan into two components such as repayment of a principal amount and repayment of an interest on the home loan. As a repayment comprises of the two various components, a tax gain on the home loan governed by the various sections of an income tax act and also these claimed as the tax deductions under the various sections during filling an income tax return. An amount paid as the repayment of the principal amount of the home loan by the individual or HUF permits as the tax deduction under the section 80C of an income tax act. A maximum tax deduction permits under the section 80C is 150000 Rs.
Benefits Of Home Loan:
The tax deduction is a total of a deduction allowed under the section 80C and also includes the amount invested in the PPF account, equity oriented mutual funds, senior citizens saving scheme, national savings certificate and tax saving fixed deposits and more others. Concentrate on the tax benefit while taking the home loans. Home Loans will give you a benefit for you. The tax gain of the home loan under the section 80C for the repayment of the principal part of a home loan allowed after a construction is complete and also a completion certificate has awarded. There is no deduction could be allowed under the action for the repayment of the principal for the years while which a property is under the construction. If you are planning to purchase the under construction property as this is priced at the lower price compared to fully completed property, you are also requested to note the service tax is levied in under the construction property.