How to Avail Tax Benefits on Home Loans

Buying a home for most people is a once-in-a-lifetime investment. There are several things that go into the process of purchasing a house—how many bedrooms does it have, whether it suits your family, if it’s well connected to places in the city and most importantly, how much does it cost. For those of you searching for apartments in Bangalore, there are several 2BHK flats on Kanakapura Road, as it is an upcoming locale preferred by many people over the last couple years. 

Most people avail home loans because buying a house can be an expensive affair. But something a lot of people overlook is the tax benefits one is eligible for once they’ve applied for a home loan. Here are some ways in which you can avail tax benefits on your home loan: 

1. Interest: If you’ve applied for a home loan, then you are aware that your EMI is divided into two parts—the interest payment and the principal repayment. You can claim a deduction on your interest payment from your total income in the year. This deduction will come up to no more than INR 2 Lakhs. 

2. Principal Repayment: You can also claim a deduction on your principal repayment EMI up to INR 1.5 Lakh. Keep in mind that you cannot avail this deduction if you decide to sell the house within 5 years of possession, in which case your deduction claim will be added back to your income in the year of sale of the house. 

To know more about apartments in Bangalore, please click on source link below:

Location: Bengaluru, Karnataka, India

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