Budget 2012 – Like every year common people have their eyes on the upcoming financial budget. This financial budget is likely to get some good news for home loan borrowers in the form of additional tax benefit on payment of interest amount and repayment of principal amount.
As of now, one is entitled to claim tax benefit on both repayment of principal amount and payment of interest as per section 80C and section 24 of the income tax act 1961.
Income Tax Deductions Under Section 80C For Principal Loan Repayment :- Section 80C of the income tax act allows tax deduction upto Rs. 1 lakh on Home Loan Principal Repayment, Stamp Duty And Registration Charges for home etc.
Income Tax Deductions Under Section 24 For Interest Payment :- Section 24 of the income tax act allows tax deduction upto Rs 1.5 lakh on home loan interest payment.
Budget 2012 is likely to introduce some additional benefits for home loan borrowers which includes:-
Income Tax Deductions Under Section 80C For Principal Loan Repayment
- Repayment of principal amount on home loan will be treated as a separate tax exemption entity and excluded from benefits under section 80 C.
Income Tax Deductions Under Section 24 For Interest Payment
- Tax exemption on home loan interest payment should be raised to Rs 3 lakhs from the existing limit of Rs 1.5 lakhs.
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