Tax Benefits Available for Loan Against Property Applicants

As we all know, Indian Income Tax department has certain provisions that allow residents to claim tax benefits on loan against property as per different sections namely under section 80C, 80D, 80E, and 80EE along with section 24B. Most of these tax benefits can be claimed on the interest component paid towards a loan taken for the following reasons:-

> A loan taken for the purpose of financing higher education of self or their kids. Interest paid against this loan can be claimed (up to what’s applicable) as a tax deduction under section 80E. If you’re considering taking an education loan, only the person whose education is being financed can avail this deduction or the student’s parent can (if they are the ones paying EMI).

>Given the fact home buying is ongoing process because it’s not only about owning one, people also have to maintain it through regular home renovation to preserve its market value. That said, the cost of getting your home renovated even once is quite high and hence, it’s understood the person would need additional financial support. Accordingly, people taking a loan to manage the said cost can claim a deduction worth Rs 1.5 lakh every year against the interest paid under section 80C.

> Lastly, people can also claim a deduction (varying as per the nature of expense) if a loan is taken for managing medical expenses.

Additional Read: Tax Benefits Associated while Taking a Loan Against Property

Talking about which loan one should take in order to avail all above shared tax benefits, a loan against property is a conducive option.

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