12 Jun 2023 / Shubhashish Homes

Unlocking the Gateway to Tax Savings: The Benefits of Taking a Home Loan

Unlocking the Gateway to Tax Savings: The Benefits of Taking a Home Loan

Owning a home is a cherished dream for many individuals, and with Shubhashish Homes, that dream can become a reality. But did you know that besides fulfilling your desire for a home, taking a home loan can also offer several tax benefits? In this blog, we will explore how a home loan from Shubhashish Homes can not only help you achieve homeownership but also provide substantial tax advantages that can save you money in the long run.

Additional Deduction for First-Time Homebuyers:

If you are a first-time homebuyer, you can enjoy an additional deduction under Section 80EE of the Income Tax Act. This deduction is available over and above the deduction mentioned earlier. This provision encourages individuals to fulfil their dreams of owning a home and enjoy the associated tax benefits.

Principal Repayment Deductions:

Apart from the interest component, the repayment of the principal amount of your home loan is also eligible for tax benefits. Under Section 80C of the Income Tax Act, you can claim a deduction for the principal repayment. This deduction applies to the repayment of the loan, which includes any pre-EMI interest, regular EMIs, or lump-sum payments made towards the principal. By claiming this deduction, you can effectively reduce your taxable income and save on taxes.

Tax Benefits for Joint Home Loans:

If you have opted for a joint home loan, the tax benefits can be even more advantageous. In the case of a joint loan with a co-applicant, both individuals can claim deductions individually. This means that each co-applicant can claim deductions on both the principal and interest components of the loan, subject to the specified limits. By leveraging this provision, you can maximize your tax savings and reduce the overall tax burden.

Tax Benefits on Under-Construction Properties:

The benefits of home loans are not limited to ready-to-move-in properties. If you have taken a home loan for an under-construction property, you can still claim tax benefits. The interest paid during the pre-construction period can be claimed in instalments, starting from the year of completion of the construction. This provision allows you to avail yourself of tax benefits even before you move into your new home, providing financial relief during the construction phase.

Conclusion:

Taking a home loan not only helps you achieve your dream of owning a home but also brings along substantial tax benefits. The deductions on home loan interest, principal repayment, and additional benefits for first-time homebuyers can significantly reduce your tax liability and increase your savings. By leveraging joint home loans and availing tax benefits on under-construction properties, you can further enhance your tax savings. So, why wait?

Explore the wide range of homes offered by Shubhashish Homes and embark on your journey to homeownership while enjoying the tax advantages that come with it.