Getting a construction financing to invest in a property gets multiple tax benefits. Most are conscious of the new Rs. dos Lakh deduction which is paid off to the interest section of the home loan. not, there are more pros and you will regulations one to that loan taker needs to be aware of. Skills these types of advantages and also the Income tax deductions before buying a beneficial house might help save lot of money for you.
- Repayment from dominant – Here is the matter you take due to the fact a home loan
- Cost interesting – This is actually the focus you pay for the financial
- Pre-construction attention – This is the attract you only pay to the home around structure
Repayment away from Prominent on your own Housing Mortgage:
Area 80C will bring income tax great things about up to Rs.1.5 lakhs to your principal paid down into the financial. Here is the same part which also brings income tax pros into HRA, PF, PPF, Insurance policies, NSC, Common Financing etc. This means that, the quantity you earn exempted try step 1.5 lakhs off all the significantly more than income tax protecting methods. The principal component of new EMIs paid along the financial year is going to be claimed because non-nonexempt count. The new annual cost certification awarded by the financing financial/facilities will obviously talk about the main and you will Attention portion. [Read more…]