• Should I take this home loan


CTC - 20 LPA

I am moving to Gurgaon from Jaipur and want to buy my first house in Jaipur which would be available for possession only after 3 years with a home loan of 50 Lakhs, should I take this home loan and  what would be the tax benefits I would be enlightened to, considering also that I am living in a different city due to work purpose.
As per my knowledge 1.5L on the principal as unlimited on interest as I am not living in the city home is bought.
More than that does it makes sense to take that much Home loan as I have all my savings burnt due to some personal unforseen reasons
Asked 7 years ago in Income Tax

As you are getting possession of the house only after 3 years, the interest paid till the date of occupation will be capitalised and available for set off in 5 equal annual installments. So as of now, you will not get any tax benefits. The repayment of principal can however be claimed as deduction u/s 80C. However, as your CTC is 20 LPA, you would have most possibly utilised the limit of Rs 1.5 L u/s 80C by way of deduction towards PF.

In view of your present precarious financial situation, taking housing loan of Rs 50L will be a burden for you, if you are considering the house as an investment avenue and not for the purpose of self occupation as and when it is ready. If you are planning to stay in the house thus saving rent, then only it is worthwhile to take a plunge.

B Vijaya Kumar
CA, Hyderabad
1000 Answers
124 Consultations

5.0 on 5.0

In Union Budget 2017 the government has reduced interest set off on home loans for rented property.

After Budget 2017 – Now the budget 2017 will limit this set off of loss from rented house property to Rs 2 lakhs per annum.

Sir in your case the House will be considered as rented out and you can get a maximum setoff of Rs.2 Lakhs as interest deduction. Before the Budget 2017 the interest paid for rented property was unlimited. But not now.

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
164 Consultations

5.0 on 5.0

Hello Sir,

The principle benefit is capped at Rs.150,000/- under section 80C.

In the current budget even the Interest benefit is capped at Rs.200,000/- no matter it is let out or self occupied.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Hi,

You can claim benefit of home loan under section 24, 80 C and 80 EE (if you are first time buyer)

You can claim deduction under section 24 for the interest paid on the home loan.

one can avail the deduction on Home Loan for payment of Interest tax benefit. The self-occupied property allows the deduction with the maximum limit of Rs. 2 lakh if it takes the completion within 5 years from the end of the Financial Year, otherwise Rs. 30,000.

Tax benefit on loan repayment of letout will be restricted to Rs 2 lakh per annum only

The unclaimed loss if any will be carried forward to be set off against house property income of subsequent 8 years

First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met for claiming tax deduction under section 80EE.

The home loan should have been sanctioned during / after FY 2016-17.

Loan amount should be less than Rs 35 Lakh.

The value of the house should not be more than Rs 50 Lakh &

The home buyer should not have any other existing residential house in his name.

Under section 80C

The maximum deduction allowed for the repayment of the principal amount of home loan is Rs. 1.5 lakh.

Vishakha Agarwal
CA, Bangalore
448 Answers
85 Consultations

5.0 on 5.0

Hello Sir,

You can claim Rs.150,000/- as principle and Rs.200,000/- as interest benefit.

Regards

Keerthiga Padmanabhan

M.Com., CA, LLB

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

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