Recently we examined home loan tax exemption accessible in the financial year 2015-16 (the assessment year 2016-17). You can read them in detail here. Financial plan 2016 brought some duty related changes for home purchasers material from money related the year 2016-17, here’s a recap of your Tax exemptions in FY 2016-17.
There is no adjustment in the tax reduction for home loan enthusiasm from a year ago
A most extreme reasoning of Rs. 2,00,000 can be asserted for a property which is self-possessed. Self-involved means a property in which you live or your family lives or it is lying empty. Perused in detail here.
Extra tax benefits under area 80EE
Section 80EE has been redone. An extra conclusion of Rs. 50,000 on home loan intrigue is permitted to be asserted beginning money related the year 2016-17. However, to have the capacity to claim this derivation, you should meet the accompanying conditions
The loan must be taken between first April 2016 to 31st March 2017
As on the date of endorse of the loan, the citizen ought not to claim any property
The loan must be taken from a budgetary establishment
The estimation of the house must be not as much as Rs. 50 lakhs
The loan must be for not as much as Rs. 35 lakhs
In the event that these conditions are met, you can assert an extra reasoning of Rs 50,000 for home loan intrigue other than Rs 2lakhs specified in the principal shot. There is no time confine on the period for which this conclusion is permitted, you can assert this for whatever length of time that you are reimbursing the loan.
Also Read: Different Types of Tax Benefits that you can get on Your Home Loans
Augmentation of time utmost for the fulfillment of development – Sometimes, citizens bring home loans for under-development property. To claim Rs 2lakhs reasoning on such home loan intrigue, the development of the property must be finished inside 3 years. (Time of 3 years is ascertained from the end of the money related year in which loan is taken). This time of 3 years has been stretched out to 5 years beginning first April 2016.
Take note of that intrigue derivation can be asserted beginning the budgetary year in which development of the property is finished.
