Amid the Corona epidemic, most of the country’s public and private banks are offering home loans at interest rates ranging from 6.80% to 7.50%. According to banks, this is the lowest interest rate in the last decade.
That means you can complete your dream home with low EMI. Not only this, with the help of home loan you can do this Later, you can get many other benefits including income tax exemption. It will save you too. Let us know how you can get benefits on home loan.
The home loan monthly installment (EMI) consists of two parts. The first payment of principal and the second payment of interest. You can claim exemption under section 80C of the Income Tax Act on payment of principal amount. You can claim a tax deduction of up to Rs 1.5 lakh on the principal of a home loan. You can also claim a tax deduction on interest paid on a home loan. Interest on home loans is tax free under section 24B. You can get a maximum discount of up to Rs 2 lakh in a single financial year. There is no upper limit for claiming interest deduction on rental property.