Yes, you can get tax benefits on a Loan Against Property (LAP) in India under the provisions of the Income Tax Act, 1961. These benefits make it easier to afford housing. Here are the key
loan against property tax benefits.
Get home loans without hefty paperwork through NoBroker Pay your rent online and get instant rent receipt to claim HRAInterest Payment: The interest paid on a LAP is eligible for tax deductions under section 24 of the Income Tax Act. The maximum deductible amount is Rs. 2 Lakhs p.a. for a self-occupied property and no limit for a let-out property.
Principal Repayment: The principal repayment under Section 80C is eligible for tax deductions, subject to a maximum limit of Rs. 1.5 Lakhs p.a.
Let-Out Property: If the property against which the loan is taken is let-out, the rent received is taxable as income from house property and the interest paid on the LAP is eligible for deduction as a business expense.
It is important to note that the above
income tax benefit for loan against property
are subject to the terms and conditions specified in the Income Tax Act and are subject to change from time to time.
Income tax benefit on loan against property
helps you reduce your tax liability and increase your savings. It is important to keep track of all the necessary documents and maintain proper records to avail of the tax benefits on a Loan Against Property.
In addition to the tax benefits mentioned above, a Loan Against Property can also offer several other benefits such as a higher loan amount, flexible repayment tenure, and low-interest rates compared to other forms of loans. This makes a LAP an attractive option for individuals who require a large sum of money for personal or business purposes.
It is advisable to seek professional advice and keep yourself updated with the latest tax laws about
loan against property tax benefits.
Read more: How many home loans are eligible for tax exemption? How much tax can be saved in ELSS? How to Get Loan Against Property: Eligibility, Documents RequiredShifting, House?
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Authors Of The Question
Can I get tax benefit on loan against property?
Yash
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1 Year
2023-01-31T18:15:43+00:00 2023-01-31T18:15:44+00:00Comment
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