Additional Tax Benefits on Home Loans for New Home Buyer

Additional Tax Benefits for New Home Buyer

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Additional Tax Benefits for New Home Buyer

Everyone is familiar that availing a Home Loan can help you save on tax. Up to Rs. 1.5 Lakhs can be claimed as deduction towards interest under Sec 24 and principal payments under section 80C which has a cap of Rs. 1Lakh. In Budget 2013, additional tax benefit of Rs. 1 Lakhs was announced for new house buyers under Sec 80EE. In this article we briefly discuss the additional tax benefit given by the government.

Budget 2013 announced major relaxation for the new house buyers by giving them additional exemption of Rs. 1 Lakhs in taxation under Sec 80EE. This announcement was made to encourage new individual buyers and to boost the demand of the housing sector in India. Following are some key highlights of this announcement that should be kept in mind while filling tax returns for Financial Year 2013-14. Following conditions are to be satisfied to claim a benefit under this section:

  1. The loan is taken for acquisition of House Property
  2. The loan has to be sanctioned between April 1, 2013 to March 31, 2014
  3. Value of the Residential Property is not more than Rs. 40 Lakhs
  4. Loan amount does not exceed Rs. 25 Lakhs
  5. Maximum additional deduction allowed is Rs 1 Lakhs for the financial year 2013-14
  6. 1 Lakhs deduction for interest paid is over and above the normal deduction of Rs. 1.5 Lakhs for the financial year 2013-14
  7. After deducting normal deduction and additional deduction, if balance deduction remains, it can be claimed in the next financial year i.e. 2014-15

H&R Block India strives to blend tax expertise with a strong focus on continually improving the client experience to provide all its clients with an unparalleled value proposition for filing their Income Tax Online.

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HRBlockIndia
HRBlockIndia
H&R Block India strives to blend tax expertise with a strong focus on continually improving the client experience to provide all its clients with an unparalleled value proposition for filing their Income Tax Online.

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