Can home loan tax income benefit be claimed for self-occupied and let-out properties?

Getting a housing loan might be beneficial in helping you purchase a home, but it can also prove to be an expensive endeavour. According to the regulations of the Income Tax Act, 1961, taking out a house loan can help you save money on your taxes.

But is it possible to get tax income benefits for self-occupied and let-out properties?

The principal amount and the interest amount are the two components of the EMI that you must pay each month. You can make use of home loan emi calculator to find out home loan interest rate you will have to pay.

Under Section 80 C of the Income Tax Act of 1961, you can claim a deduction for the amount you paid on account of principle in the EMI for a self-occupied property. In the event that you have a second house, whether it is occupied by your parents or vacant, it will be considered your self-occupied property.

In relation to interest paid on a money home loan for self-occupied and rented residences, there are distinct rules for deducting the amount of interest paid on the loan. A person is permitted to own a maximum of two residential properties that are used for their own purposes. It is necessary to choose two properties for self-occupation if a person owns more than two dwelling properties for self-occupation; otherwise, the remaining properties are handled as if they have been rented out.

In the case of premises that are deemed to have been rented out, you must offer notional rent at the market rate in order to avoid taxation. Every year, you are permitted to claim a deduction of up to Rs. two lakhs in aggregate in respect of all of your self-occupied properties that are treated as such by the IRS. If you have a rented property, including a self-occupied home that is considered as a rented property, you can deduct the entire amount of interest from your rental income.

To the contrary, there is a limit of two lakh rupees on the amount of loss that can be claimed under the income from house property head for all of the properties taken together, whether they are self-occupied or rented out, and that can be deducted from your other income within the same year.

Any loss in excess of two lakh rupees that cannot be offset against other income during the current year is allowed to be carried forward to the following year. A loss that has been carried forward can be deducted from taxable income under the dwelling property category for the next eight years.

When it comes to financial planning, the UCO Bank offers a diverse selection of products and services, including those that can help you save money on taxes. Saving money on taxes is one of the most important factors to consider.

Visit :

https://www.ucobank.com/english/home-loan for more information.