Budget 2021: An additional tax exemption of Rs 1.5 lakh will be available on home loans

New delhi date. 01 February 2021, Saturday

There is good news in this budget for people buying a home. The government has extended the additional tax exemption available under Section 80EEA of the Income Tax Act for one year. The government gives an additional rebate of Rs 1.5 lakh on home loan interest, which was due on March 31, 2021, has been increased to March 31, 2022.

The government's move will benefit first-time home buyers. If you have taken a loan of up to Rs 45 lakh before March 31, 2021 to buy a house, you can avail this deduction. There are still many types of tax benefits available on loans. If one owns a self-occupied property, one can get a rebate of up to Rs 1.5 lakh under the principal section 80C of the home loan. While interest of Rs 2 lakh is tax deductible under section 24 (B).

The rebate on home loan interest was introduced in 2019. This exemption is on tax exemption on interest of Rs. 2 lakhs received under Income Tax Section 24 (B). This means that a taxpayer can avail a total tax exemption of Rs 3.5 lakh a year on the interest on affordable housing home loans but there are also some conditions for obtaining this tax exemption.

Terms

• Home loan taken from a financial institution or housing finance company to buy a residential house property
• Home loan taken between April 1, 2021 and March 31, 2022
• The stamp duty on house property should not exceed Rs. 45 lakhs
• The taxpayer should not already have any residential property.