Home Loan Calculation: If you are planning to take a home loan, then this news is of great use to you. If you have taken a home loan before March 31, then you can get a benefit of up to Rs 5 lakh. Let’s know the calculation.
There is news of work for the people planning for home loan. You have only two days to take maximum advantage of home loan. Actually, after March 31, the additional tax exemption available on home loans will end.
Significantly, in the budget of the year 2019, the government had added a new section in the Income Tax Act. Under the new section, the provision of additional tax exemption was given to the customers taking home loans on the purchase of a house. In the Income Tax Act, an additional tax exemption of Rs 1.5 lakh is given on the interest paid on the home loan under section 80EEA.
Exemption is available under section 24B of income tax
Let us tell you that under the Income Tax Act, such customers who are going to take a home loan are given tax exemption up to Rs 2 lakh annually on the interest payment. However, in section 80EEA, there is a further exemption of up to 1.5 lakhs. If we look at this, then till March 31, 2022, home loan borrowers will get a total tax exemption of Rs 3.5 lakh on interest.
Huge profit of 5 lakhs
It is worth noting that apart from exemption in both these taxes, the principal amount of the home loan also gets tax exemption. Actually, under Section 80C of Income Tax, a tax exemption of Rs 1.5 lakh is available on the principal amount of the home loan every year.
Now if you add the total account, then till March 31, home loan borrowers will get a tax exemption of Rs 5 lakh. After this you will not get this lakh because in the budget 2022, the government has categorically refused to extend the additional tax exemption period of 1.5 lakh.
This condition must be fulfilled
- In order to get extra tax exemption on home loan interest under section 80EEA, home buyers need to fulfill certain conditions.
- For this, the cost of the house should not exceed Rs 45 lakh.
- Its benefit will be given only to first time home buyers.
- If NRI is also buying a house in the country for the first time and fulfills all the conditions, then he will also get an additional tax exemption of 1.5 lakhs.
