Taking an engineers home loan can offer several tax benefits for borrowers. Here are some tax benefits of taking an engineers home loan:
- Tax deduction on interest paid: Borrowers can claim a deduction on the interest paid on the home loan under Section 24 of the Income Tax Act, up to a maximum of Rs. 2 lakh per year.
- Tax deduction on principal repayment: Borrowers can also claim a deduction on the principal repayment under Section 80C of the Income Tax Act, up to a maximum of Rs. 1.5 lakh per year.
- Stamp duty and registration charges: Borrowers can also claim a deduction on the stamp duty and registration charges paid at the time of purchase of the property under Section 80C, up to a maximum of Rs. 1.5 lakh per year.
- Joint ownership: If the home loan is taken jointly, each borrower can claim tax benefits separately under the above-mentioned sections.
By taking an engineers home loan, borrowers can not only fulfill their dream of owning a home but also avail tax benefits and save on their tax liability.