Contents

• Introduction
• Benefits to home loan barrowers under income tax Act
• Income Tax benefit under section 80C
• Income tax benefit under Section 24
• Tax benefits during construction face and before taking possession
• Example: Mr A and Mrs B

Description

Many young couples where both are employed wish to purchase a flat or house ‎under construction or construct a house to take benefit under various sections ‎of Income tax Act and own a house / flat early in their life. The purpose may be ‎as part of their investment plan and to take maximum advantage of benefits ‎available and / or for the necessity of a home for their own occupation. However ‎before taking such investment decision one should know how much benefit is ‎available and how much of the available benefit can be utilised and is it a better ‎option as investment? ‎
In many cases most people would have already started PPF, life Insurance and ‎SIP under ELSS, when they decide to purchase a home either for own ‎occupation or as an investment option, by barrowing funds. ‎