CA Chirag Chauhan
CA Chirag Chauhan

@CAChirag

7 Tweets 4 reads Dec 03, 2022
First-time homebuyer? You can claim up to Rs 5 lakhs as Income Tax deductions if you are taking a home loan
Know how - Read Thread ๐Ÿงต
If you are buying a home for the first time, you are entitled to get income tax benefits on it under three sections โ€”ย 
1) Section 24
2) Section 80EEA
3) Section 80C
1) Section 24 - It permits a deduction of up to 2 lakh rupees on the interest paid for a house loan acquired for a self-occupied property, and it provides a deduction of the entire interest for a property that is let out.
2) Section 80EEA - A deduction for interest payments up to Rs 1,50,000 is available under Section 80EEA. This deduction is over and above the deduction of Rs 2 lakh for interest payments available under Section 24(b) of the Income Tax Act.
Some Conditions to claim 80EEA
1) Loan must be taken from a financial institution
2) Loan should be sanctioned 1st April 2019 - 31st March 2022
3) Stamp duty value should be < Rs 45 lakhs
4) Taxpayer should be a first-time home buyer & some restriction to the carpet area
3) Section 80C - It allows a maximum deduction of Rs 1.5 lakh every year from the taxpayers total income, a borrower can avail deduction on the repayment of principal.
So in short you can avail of a deduction of Rs 2 lakh in Section 24, an additional 1.5 lakh in Section 80EEA and Rs 1.5 lakh in Section 80C, total of Rs 5 lakhs

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