Home Loan - plz clarify on the income tax benefit for this scenario?

[NewsDesk]

I live in Chennai. I am planning to buy a flat in Pune. For this I am taking home loan from a bank in Pune. I will be continuing to stay in Chennai only (that means I will not be occupying / possessing personally this flat). Can you plz clarify on the income tax benefit for this scenario? My assumption is that I will be eligible for the interest portion of Rs. 150000/- (which will be directly deducted from my taxable income) & Rs. 100000/- for principal portion (which will come under savings ceiling of 100000/-). Kindly clear my assumptions.

via email @Sanjay Jain

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[LastWarrior]

Section 80C: Tax Benefit on Home Loan
The principal amount is covered under Section 80C and has a Rs. 1 lakh limit. This is only available to you if you’re living in the house that you have taken the loan for. That means you can’t use this exemption if the house is under construction or if you are not living in it.

The only exception to this condition is if you work in a different city. If you work in a different city then you can claim exemption on the principal amount of your home loan under 80C.

Section 24: Tax Benefit on the Interest On Home Loan
The maximum limit under this section is Rs. 1,50,000 and you don’t have to actually live in the house to claim this benefit.

The interest payment is deducted from your taxable income and thus reduces your tax liability. There is no limit on the number of houses you can claim this as well as the location of the houses. The only limit is Rs. 1,50,000 on the whole amount.

[rijbadgett]

anyone please explain. Thanks

[Madhura]

anyone please explain. Thanks

What is your query?

[amanjawanda]

I think you want to know about Income tax benefits Clearly.

There are two sections of the “Income Tax Act” of India which will allow you to get a deduction if you have taken a home loan; this of course ignores home loans from “private sources” (Friend, Family, etc). The two sections are here under.

• Sec 24(b) of the Income Tax Act, 1961
• Sec 80(c) of the Income Tax Act, 1961

*The two Sections are explained above