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Income tax rebate against home loan.

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Income tax rebate against home loan.

Last updated: September 12 2010
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  • Income tax rebate against home loan.

    Hi All,

    I have a query regarding Income tax against Home loan

    How we get the income tax rebate against home loan, It's against Interest amount or against Principal amount??
    Can we claim HRA after getting the tax rebate against home loan?
    Are we eligible go get tax rebate against home loan before possesion?

    Thanks!
    Anil..
  • #2

    #2

    Re : Income tax rebate against home loan.

    Yes, Interest & Principal rebate are applicable only after possesion.
    Post possesion, you can claim the rebate under following 2 scenarios:

    1. You are staying in the house:
    Interest component:
    *Max rebate upto Rs.1.5L p.a.
    *In case ur current financial year emi is such that ur interest component=<Rs.1.5L then u can add previous years interest/5 (for the next 5 yrs, provided u continue the loan). In any case, the max decuction under Section24 is =< 1.5L p.a.
    Principal component:
    *You can claim benefit under section 80C(which incl. insurance premiums, etc) upto a max of Rs 1L

    2. You have rented out the property:
    Interest component:
    *No upper limit on rebate
    *70% of rental income is deductable from your interest component & the rest is climable for rebate
    Principal component:
    *I think no benefit(pls. confirm from elsewhere)

    Also in scenario 2, it should be either your 2nd property OR some property far from where you might be residing.

    Comment

    • #3

      #3

      Re : Income tax rebate against home loan.

      Good info. Should be a real help, to guys who r not aware.

      Originally posted by beowulf View Post
      Yes, Interest & Principal rebate are applicable only after possesion.
      Post possesion, you can claim the rebate under following 2 scenarios:

      1. You are staying in the house:
      Interest component:
      *Max rebate upto Rs.1.5L p.a.
      *In case ur current financial year emi is such that ur interest component=<Rs.1.5L then u can add previous years interest/5 (for the next 5 yrs, provided u continue the loan). In any case, the max decuction under Section24 is =< 1.5L p.a.
      Principal component:
      *You can claim benefit under section 80C(which incl. insurance premiums, etc) upto a max of Rs 1L

      2. You have rented out the property:
      Interest component:
      *No upper limit on rebate
      *70&#37; of rental income is deductable from your interest component & the rest is climable for rebate
      Principal component:
      *I think no benefit(pls. confirm from elsewhere)

      Also in scenario 2, it should be either your 2nd property OR some property far from where you might be residing.
      Last edited September 8 2010, 08:52 PM.
      Please read IREF rules | FAQ's

      Comment

      • #4

        #4

        Re : Income tax rebate against home loan.

        Originally posted by beowulf View Post
        Yes, Interest & Principal rebate are applicable only after possesion.
        Post possesion, you can claim the rebate under following 2 scenarios:

        1. You are staying in the house:
        Interest component:
        *Max rebate upto Rs.1.5L p.a.
        *In case ur current financial year emi is such that ur interest component=<Rs.1.5L then u can add previous years interest/5 (for the next 5 yrs, provided u continue the loan). In any case, the max decuction under Section24 is =< 1.5L p.a.
        Principal component:
        *You can claim benefit under section 80C(which incl. insurance premiums, etc) upto a max of Rs 1L
        2. You have rented out the property:
        Interest component:
        *No upper limit on rebate
        *70% of rental income is deductable from your interest component & the rest is climable for rebate
        Principal component:
        *I think no benefit(pls. confirm from elsewhere)

        Also in scenario 2, it should be either your 2nd property OR some property far from where you might be residing.
        Also, You cannot claim tax benefit on under construction house. You must have the possession of the house with you before the end of FY.

        Comment

        • #5

          #5

          Re : Income tax rebate against home loan.

          Dtc 2012

          With DTC (Direct Tax Code) coming into effect from 2012, the tax rebates will be limited to only interest component & not principle amount.
          If you are happy, you are successful.

          Comment

          • #6

            #6

            Re : Income tax rebate against home loan.

            Dtc

            Can you post some helping article links for DTC?

            Comment

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