Home Loans in India for your dream home and tax saving
With the rising real estate prices the dream to have a home of your own seems like a distant dream. The rising cost of living on the other hand makes it difficult to save enough to buy a house of your own. To ease the pain of the individuals seeking a home of their own but are short of cash, finance companies and banks provide home loans in India. These loans lend you the required money to buy your house. Moreover they even function as an excellent tax saving scheme. In this article we will discuss about how home loans help you get the house of your dreams and save tax too.
Home loans are available today with basic documentation processes and without the requirement of any collaterals or guarantees. This makes availing the loans faster without lengthy formalities. Home loans in India are offered for different kinds of housing needs like home purchase loan, home extension loan, home construction loan, land purchase loan and stamp duty loan.
A very important thing to remember about home loans is that the lender does not provide the entire amount required to buy a house. The bank or the finance company pays only 80 €" 90% of the cost of the home you buy; the rest of the amount has to be covered by the borrower. The interest rate of home loan that you need to pay may vary from bank to bank. The public sector banks charge comparatively low rate of interest as compared to the private sector banks. The loan of your desired loan amount gets sanctioned after the bank evaluates your earnings and overall repayment ability. So you are required to submit quite a few documents.
Home loan in India acts as an excellent tax saving schemes for interested individuals. There are two sections under Indian Income Tax law that provide you this benefit - Indian Income Tax Act 1961, Section 24 (B) and Indian Income Tax Act 1961, Section 80 (C..). On making proper investments you can get a total deduction of Rs. 2.5lacs per year. Also under section 24, one can save up to Rs. 1.5lacs and under section 80 save up to Rs. 1lacs.
Section 24(b) of the Income Tax Act, 1961 is applicable on Home loan for purchase of house or construction of the house property. Under this you can avail deduction of up to Rs. 1, 50, 000 of you total tax liability. Causes like reconstruction or renewal or repairs are eligible for deductions under the said section. Section 80(c) of the Income Tax Act, 1961 provides you a deduction of up to Rs. 1, 00, 000 on the principal repayment amount.
Home loan in India is not just a means of buying a shelter for yourself but also helps you save a lot. Before finalizing any bank or financial company to get a loan from, be sure to research on the various offers in the market. It is sensible to get a home loan form a provider that offer least interest rate and additional benefits like speedy sanction, flexibility of payment and less formalities.
Home loans are available today with basic documentation processes and without the requirement of any collaterals or guarantees. This makes availing the loans faster without lengthy formalities. Home loans in India are offered for different kinds of housing needs like home purchase loan, home extension loan, home construction loan, land purchase loan and stamp duty loan.
A very important thing to remember about home loans is that the lender does not provide the entire amount required to buy a house. The bank or the finance company pays only 80 €" 90% of the cost of the home you buy; the rest of the amount has to be covered by the borrower. The interest rate of home loan that you need to pay may vary from bank to bank. The public sector banks charge comparatively low rate of interest as compared to the private sector banks. The loan of your desired loan amount gets sanctioned after the bank evaluates your earnings and overall repayment ability. So you are required to submit quite a few documents.
Home loan in India acts as an excellent tax saving schemes for interested individuals. There are two sections under Indian Income Tax law that provide you this benefit - Indian Income Tax Act 1961, Section 24 (B) and Indian Income Tax Act 1961, Section 80 (C..). On making proper investments you can get a total deduction of Rs. 2.5lacs per year. Also under section 24, one can save up to Rs. 1.5lacs and under section 80 save up to Rs. 1lacs.
Section 24(b) of the Income Tax Act, 1961 is applicable on Home loan for purchase of house or construction of the house property. Under this you can avail deduction of up to Rs. 1, 50, 000 of you total tax liability. Causes like reconstruction or renewal or repairs are eligible for deductions under the said section. Section 80(c) of the Income Tax Act, 1961 provides you a deduction of up to Rs. 1, 00, 000 on the principal repayment amount.
Home loan in India is not just a means of buying a shelter for yourself but also helps you save a lot. Before finalizing any bank or financial company to get a loan from, be sure to research on the various offers in the market. It is sensible to get a home loan form a provider that offer least interest rate and additional benefits like speedy sanction, flexibility of payment and less formalities.
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