These days Indian economy is becoming more powerful and robust and this will continue in the future also. The home loan is the best and one of the trending loans nowadays we can say and also the tax benefits offered in home loans are just tremendous. Because of this, the home is one of the trending instruments when it comes to saving and spending at the same time. Let me tell you in detail.
How can you save taxes on home loan EMI?
Home loan EMI is divided into two components one in the principal amount and the other one is interest rate amount. The home loan EMI calculator will calculate the EMI including all the tax but Under the provisions of the Income Tax Act, 1961 you can get the tax benefits on both of the components that are on the principal and interest amount as well. The main point is that for the new home buyer and the one who is applying the loan for the first time get the maximum benefits of home loan but when you are applying for the second time then the tax will deduct to some extent.
Section of the income tax that allows you to take to save the tax are:
1. Section 80C
2. Section 24B
3. Section 80EE
4. Section 80EEA
Depending on the loan amount you can save up to INR 5 lac by using these tax benefits. Apply for a home loan at a low rate of interest.