Home Loan Comes Under Which Section?

I belong to a middle-class family so had no such huge financial support to buy a house one at a go. I asked my father what to do and he suggested that I can opt for a home loan since I have a settled job, so I can pay the amount monthly. I was unaware of the process and did not even have an idea about which home loan comes under which section. I had to discuss it with some legal experts and came to know that the home loan principal is part of Section 80C of the Income Tax Act. Let me tell you more about it.

A home loan has several aspects, like interest rate, deduction rate, and more and different sections are related to it like:

• 80 EE and Section 24: Deduction can be claimed for interest on a home loan under section 24 of the Income Tax Act, 1961.

• 80 EEA: A deduction for interest payments up to Rs 1,50,000 can be availed under Section 80 EEA.

Check whether you are eligible for a home loan or not via NoBroker here [widget_homeLoan_checkEligibility_form]

These sections are the two important sections that one must be knowing if one wants to avail or know more about the home loan. 

People who have opted for home loans are in deductions under section 24, Section 80C, and section 80 EE. 

• Under section 80C

  , one can get tax benefits on the principal amount of a home loan and the maximum tax deduction allowed is Rs. 1,50,000.

• Section 24:

  Maximum tax deduction allowed under this section is Rs 2 Lakh. If the house is not built within 3 years from the end of the financial year, you can claim up to Rs. 30,000 as a deduction.

• Section 80 EE

  : This section offers tax benefit on interest paid on home loans for the first-time buyers and the amount cannot exceed Rs. 25lakh. The value of the residential property must be below Rs. 50 Lakh and the deduction under this section cannot be more than Rs. 50,000.

• Section 80 EEA:

  Under this section, a person can claim a tax benefit of up to Rs. 1.5 lakh in a year. 

The overall home loan concept is a bit hard to know.

I hope now you know home loan comes under which section

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