Facts about Home Loan incentives that most of us didn’t know:
Home loans are the biggest loans taking across the globe! Most people opt for this loan, just next to your personal loan. Sometimes, the promotional offers on low-interest rates, charges waived off or any other irresistible offers will make people go hazy!
But, its nothing wrong if you opt for a home loan. Its wrong only when you don’t utilize the offer it comes with!! Do you know that you could actually claim a tax benefit on the EMI’s paid, even if you had missed one in that year!
Similarly, there are many other facts, which you ought to know before you head to apply for a loan or in case you already have one!
Claiming tax benefit on interests paid, even if you missed one in the annual year:
The government has approved for tax benefits on interest paid for the entire year even though you didn’t pay a few EMI’s in between. Until the interest liability sits on you, you can claim this.
Repayment tax benefit of the principal is reversed if you sell house below 5year:
Yea, you heard it right!! The home loan you took, in the worst scenario if you have an EMI, and want to sell the home due to reasons, which is just 1-4-year-old, then you need to pay back the tax benefit that you got for the principal repayment. You need to hold the copy for any future references.
Tax benefits apply to loans from friends and relatives:
In cases of tax, the usage is very relevant than the loan purpose. So, for any business, if you have borrowed money from friends and relatives, the same amount can be claimed in tax. Not just for new property, you can even borrow money for reconstruction and get a tax benefit.
Have the name, claim tax benefit:
Any person who is willing to claim a tax benefit should have the property in their name, or at least as a joint holder. Its applicable to all, including your own parents. If you bought the home in your parent’s name and you pay the EMI, you are not eligible for the tax benefit, while your dad is!!
Pre-construction period interest for the claim:
Yes, this is such a relief!! If you are taking to construct a home or a building some 3 years, then the interest that you paid for the whole tenure can be considered for tax benefit up to 5 years from the date of completion of the project.