New tax regime only benefits low-income groups Chitra Gopalaswamy, a former corporate banker and homebuyer in Bengaluru, said that under the old tax regime, one could claim an income tax deduction However, for homebuyers income tax deduction of up to ₹ 1.50 lakhs on the repayment of housing loans (principal + interest) under Sec 80C is available under the old tax regime and switching to The deductions can be claimed in the ratio of ownership. The tax benefits are as follows: Interest paid on loan is eligible for deduction up to Rs.2 lakh under Section 24 when the property is self-occupied. The principal amount repayment of up to Rs.1,50,000 is eligible for deduction under Section 80C. Things you must know about tax benefits on home loan. 1. Home loan borrowers are entitled to tax benefits under Section 80C and Section 24 of the Income Tax Act. These can be claimed by the property’s owner. 2. In the case of co-owners, all are entitled to tax benefits provided they are co-borrowers for the home loan too. A typical home loan offers tax benefits such as a deduction of up to Rs. 1.5 lakh on principal repayment under section 80C of the Income Tax Act and a deduction of up to Rs. 2 lakhs on interest payments in a financial year under section 24 of the Income Tax Act. You can also claim a tax benefit if you have taken out a home loan balance transfer. This deduction expired in 2016 and was extended to 2017. After 2018, PMI premiums aren’t tax deductible any longer. If there’s an extension, the amount you can deduct depends on your household income. It begins to be phased out after $100,000. Married couples filing separately will see the phase-out start at $50,000. Even if the bank issues a single certificate for a joint home loan, the individual co-borrowers can claim the tax benefits in the ratio of their share in the home loan. Please note that the Section 80C of the Income Tax Act allows you to claim a deduction on the principal repayment of your home loan. You can claim a maximum deduction of Rs. 1.5 lakh per annum on the principal repayment for both self-occupied and let-out properties. Stamp duty and registration charges can also be included in this deduction. Tax Deduction for joint home loan. If a home loan is taken jointly, each borrower can claim a deduction on home loan interest up to Rs 2 lakh under Section 24 (b) and tax deduction on the principal repayment up to Rs 1.5 lakh under Section 80C. This doubles the amount of deductions available when compared to a home loan taken by a single applicant. uqyfL1v.

home loan benefits in income tax