Home Loan के सारे Tax Benefits समझिये - YouTube

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NAMASKAR, my name is Mukul and welcome to Asset Yogi.

Friends, a lot of subscriber requests, when made some videos earlier

that how much maximum tax benefits we can avail of in a home loan?

that make a video on this.

So, in this video, whatever are our tax benefits on home loan

whether it comes from principal repayment or interest payment

I will discuss all the clauses.

Now, in recent 2019's budget, 1.5 lakh extra detection has been allowed.

So, on today's date,

we can claim a maximum deduction of up to 5 L on the home loan

So, what are all these classes, how will the calculation be done,

this is what we are going to talk about in this video.

So watch this video carefully

till the end, so that you can understand its complete calculation very well.

So, let's begin this video.

Let us first understand some conditions first,

when we will get a tax deduction on a home loan?

If you have taken any loan for purchase and construction of the house

so you can claim a tax deduction on your home loan.

But if you have taken a loan to do some work or renovation in the existing house

then you will not get the tax deduction for a home loan.

the second thing you have to take care of is that

if you have taken a loan for construction,

even if you are doing that construction yourself

or you have invested in any builder property.

So, that construction should be completed within 5 years.

if it takes more than 5 years, then you will not get a tax deduction on a home loan.

In fact, this limit has been increased now. Earlier it was only for 3 years.

So, your construction should be completed within 5 years.

Second, when your entire house is completed

and you get the possession and completion certificate

only then do you get a tax deduction on a home loan?

Let me clarify one thing here,

there are two types of tax deduction

one is your tax deduction on the principal amount

That is when you pay the principal amount every year,

on that annual principal amount, you get a tax deduction

which is found under section 80 C.

The second deduction is available on your interest component

this interest component, which is being paid during construction also

you can avail a tax deduction on that too.

how will we do that? I am going to talk about that soon

but this principal component

but if you've repaid some principal amount during construction,

then there's is no tax deduction on that.

The fourth important thing,

which is a kind of good news, introduced in budget 2019

that now you can hold two self-occupied properties

Prior to this year,

you could only show the self-occupied property to the house you lived in

and if other properties you used to rent or didn't rent

then also you had to consider its notional rent

that is, whatever the rate is going in the market,

that you had to show in your income from the property.

But from this year you can keep two self-occupied properties

that means you will not have to show the rent

so, whatever interest you will be paying,

you can show it in the loss from properties.

How the calculation will be done, I will talk about it soon.

So, before income and loss from the property, let's talk about principal repayment.

You get a tax deduction on principal repayment under section 80 C

under section 80c, there are lots of investments.

So, this limit of total investment, this comes under 1.5 lakhs.

under this, your home loan also comes.

let's suppose, your home loan's principal payment is getting higher than 1.5 lakhs

so you need not do any extra investment

you can show full home loan's principal payment under section 80 C

I have done other text savings videos also, so do watch those videos

where I've told you about all the tax-saving investments

which come under section 80C

I have also made a video on how can we do tax-saving without investing?

You can get the links in the description below.

If we talk about principal repayment, then

you can claim it over self-occupied and let-out, both types of properties.

But if you claimed these tax deductions

and you sell your properties within 5 years

then all your tax deductions, means, all your tax benefits will be reversed.

Let's say you sold your properties after 4 years

all the tax benefits you had taken in 4 years

all those will be added to your income in the 4th year

And on that, you will have to pay tax according to your income slab.

Here, let me share one more thing with you

though it is not a part of the principal repayment

when you buy a house

the year in which you buy

If you have paid any stamp duty or registration charges on it,

that too you can claim under section 80 C.

But keep one thing in mind, this limit of section 80c

this is a total of 1.5 lakh.

Now, you can complete this whichever way you want

whether you do the principal repayment,

whether you fill the stamp duty or registration charges

Or else, there are other investments under section 80C, like

PPF,EPF,NPS

or there are ELSS mutual funds OR yulips

so in total, your investment should be around 1.5 lakhs

So till here, we've talked about principal repayment.

Now let's talk about interest payment.

Your interest repayment is covered in two places.

First is your section 24

which calculates your income or loss from house property.

here you have to keep in mind that, on this total loss from the property

there is a limit, maximum you can claim only up to 2 lakhs loss from the property.

Now two scenarios are made here

The first is that you have a self-occupied property

means that 2 self-occupied properties, which we are talking about

then on that, you do not have to take anything rent

then your income there is interest only

means, you are paying out the interest

whatever your total Interest will be

whether it is the component of interest during construction

whether it is the interest you are paying this year,

you will get a limit of 2 Lakh in the total interest.

If it's a let-out property

So, the maximum loss that you can consider for a year

has also a limit of 2 lakhs.

And the second one in which I have talked about interest during construction,

let's suppose your construction lasted for 3 or 4 years

during that time, whatever interest is there

you will do a total of that

and will divide it equally in the coming 5 years.

Let's say you had a total interest of 5 years, then you can claim 1 L every year.

But the limit will be there.

If it's your self-occupied property, then you can claim a total interest of up to 2 lakhs.

If it is a let-out property, then the maximum loss will be up to 2 lakhs only.

In fact, let's quickly understand this with the help of calculations.

Let's suppose you've taken a home loan whose annual principal payment is 2 lakhs

and annual interest is 2.5 lakhs

and during construction, whatever interest you've paid

let's say you've taken this home loan during construction only

whatever house was being built at that time

whatever interest you paid during construction,

so, in total, you paid 5 lakhs interest

So, this interest during construction, which we can also call ITC in short

you can claim this for the next 5 years

that is every year you can claim up to 20%

So, 20% of 5 lakh will be 1 lakh and you can claim up to Rs. 1 lakh as tax deduction.

Now let's go ahead with this example

let's suppose, the house you've taken a home loan for is self-occupied,

means, you yourself are living in it.

And as I said earlier, now you can keep 2 properties as self-occupied

So, if you have another property and you want to show it as self-occupied, then

you can do that.

Let us understand how it's calculation will be done.

So, firstly, under section 24, we have to calculate income from house property.

How this Income from House Property is Calculated ?

First you have to see the gross annual rent.

Now, in the case of self-occupied, this gross annual rent is zero.

You must have paid some municipal taxes

here the annual rent is 0 so you will not get any extra tax in this,

So, you've to consider it 0 only.

Net Annual Value will be zero.

After that, there are deductions for the maintenance and repairments

so it will be 0 too

because these are 30% of this Net Annual Value

after that you can show your interest on home loan

how much interest on home loan will be? it is 2.5 lakh

which is a negative amount

so, the interest amount here, I have written it 2.5 lakhs

other than that IDC, means interest during construction

is 20% of 5 lakhs

i.e. is 1 lakh

so that I've written here

Now how much is the loss the income or loss from house property ?

now we will do the complete total addition

so, -3.5 lakhs, your income or house property has become

but here we know there is a restriction

you can only get a maximum deduction of up to 2 lakhs

So, you will be able to claim a maximum deduction on 2 lakh

in the case of self-occupied property.

So, we can say that the total interest limit you are getting to claim is 2 lakhs only.

Similarly, let's discuss the case of let-out properties

let-out property means, other than your two self-occupied properties

you have given any other property at a rent

or it could be that you have given your 2nd property at a rent

if you have given any property at a rent, then you have to see its rent

and let's suppose you've considered 2 self-occupied properties

and there's a third property which you haven't given at a rent

in that case, you have to take deemed rent

that is, you have to consider the rent going on in the market

which we call notional rent.

And I assume the gross rent to be 10,000 per month

So, you will multiply it with 12

so, your gross annual rent will be 1 lakh 20 thousand

Out of this, you can subtract the municipal tax you pay annually for the property

so, here 4000 will be subtracted

1 lakh 20,000 - 4,000 = 1 lakh 16 thousand

Out of this 1 lakh 16 thousand, you can take 30% for the maintenance

for all the repairs

for all your maintenance spendings

whether it is for the security

whatever is your total maintenance

you don't have to calculate separately.

This is a standard deduction. It is calculated 30% automatically.

30% of 1,60,000 will be 34,800

now, the interest we paid on home loan is 2.5 lakhs

ITC will be 20% of 5 Lakh

So, I have taken 1 lakh here

now, how much will be your income or loss from house property?

after summing up, we get a loss of 2,68,000

but we know how much maximum loss is allowed?

you can only show a maximum loss from house property of 2 lakhs

so in this case also, you will take it as 2 lakhs only for a tax deduction

now in section 24, other than this 2 lakh deduction

means over and above

1.5 lakh deduction has been allowed

a new section has been introduced

which is section 80 EEA

let's understand its condition too

if you buy a house this year, means, you take a home loan this year

And also, you must be a first-time buyer

meaning there should be no other house in your name

in addition to that, the value of that house should be less than 45 lakhs

i.e it should come under affordable housing

then only you can claim it

and in that case, other than 2 lakhs,

as we have talked about in section 24, you can claim this extra deduction of 1.5 lakhs.

Other than this, there's one more condition

if you are already claiming a tax deduction under section 80EE

section 80EE was till last year,

under which an additional deduction of 50,000 was available other than the 2 L

which you can understand that instead of 50,000 it has been changed to 1.5 lakh.

If you are claiming that 50,000's deduction, then you will not get this deduction.

That 50,000's deduction, which we are talking about, also had similar conditions.

You should be a 1st-time buyer.

Your property value should be less than 50 lakhs.

The loan should be less than 35 lakhs.

And your loan should be sanctioned under the financial year 2016-17

So, if you are buying a house this year, then

forget about last year's 50,000's limit.

Now, you will get that 1.5 lakh limit,

if you take a loan this year and buy your house inside the affordable housing.

And maybe it will continue in the coming financial years too

because as we saw earlier, that 50,000's limit

that also continued for many years.

So as I said earlier in the introduction,

this year you can claim a tax deduction of up to Rs 5 lakhs only from home loan

1.5 lakh will be from your principal repayment

under section 80 C, if you are making a principal repayment of above 1.5 lakh,

then you can claim it fully

So, you get 2 lakh tax deduction under section 24

and 1.5 lakh tax deduction under section 80 EEA

Also, let me give you a bonus tip

if you buy joint property, i.e you are a co-owner and you have taken a joint home loan

whether you have taken it along with your parents,

whether you have taken it along with your wife or husband.

In that case, both can take their separate deduction limits.

Let's suppose your principal repayment is going 3 lakhs annually

So, both can separately take their 1.5 lakh limit

And let's suppose the interest repayment of your house is going beyond 7 lakhs

So, both of them can claim a repayment of 3.5 lakhs each.

So, this is one advantage of buying a joint property.

In fact, what are the other benefits of buying a joint property?

that I will discuss in detail in the coming videos

If you liked this video, then do like and share it with your friend family members.

so that they also get to know the tax benefits of a home loan

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till then keep learning, keep earning and be happy as always.