Income Tax Calculator: Up To Rs 5 Lakh In Tax Benefits First-Time Home Buyers Just Can’t Afford To Lose
Income tax calculator: Buying a home means that you have to pay off the EMI home loan on time. However, there are monetary benefits granted by the Income Tax Department that the mortgage seeker simply cannot afford to fail to claim. In accordance with the Income Tax Act, first-time home buyers can claim a tax benefit of up to Rs 5 lakh under various sections. But, to claim these benefits, one must also be aware of these benefits.
Speaking on the tax benefits for first-time homebuyers, Ravi Singhal, vice president of GCL Securities Limited, said: âMany first-time homebuyers are often confused about the tax benefits they can get. benefit on a home loan after the purchase. of their first residential property. If you are buying a home for the first time, you are entitled to mortgage tax benefits under three sections: section 80C, section 24 and section 80EEA of the Income Tax Act. returned. These sections of the Income Tax Act allow you to qualify for a home loan of Rs 5 lakh per year. “
Tax benefit under section 80C
Highlight the tax benefit under section 80C of the Income Tax Act; Harsh Roongta, Head of Fee Only Investment Advisers, said: âUnder Section 80C of the Income Tax Act, a first-time home buyer can claim a tax benefit of up to Rs 1.5 lakh for mortgage principal and stamp duty However, to benefit from this tax benefit, the buyer will not be able to sell the property within five years of possession.
Tax exemption under article 24
Regarding the income tax exemption for the first-time home buyer under Article 24 of the Income Tax Law, Harsh Roongta said, âUnder Article 24, a first-time home buyer can claim an income tax exemption of up to Rs 2 lakh under the interest payment component of the home loan. . But, to benefit from this tax exemption, the taxpayer or one of his family members must reside in this house. “
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Request for tax benefit under section 80EEA
Regarding the tax benefit available under Section 80EEA of the Income Tax Act for first-time buyers, Harsh Roongta said, âA first-time home buyer can claim a tax benefit of up to up to Rs 1.5 lakh under section 80EEA provided that the value of the residential property stamp duty is up to Rs 45 Lakh. Apart from that, the approval of the home loan must be dated from April 1, 2019 to March 31, 2022. “
Ravi Singhal of GCL Securities said that there are five conditions the income tax assessor must meet while claiming the tax benefit under Section 80EEA:
1]The property’s stamp duty value is expected to be up to Rs 45 Lakhs;
2]The loan sanction date must be between April 1, 2019 and March 31, 2022;
3]Assesse should not own any residential property until the loan sanction;
4]Should not claim any amount under Section 80EE Income Tax; and
5]The loan must be borrowed from a financial institution only.