Tax Benefits You Can Avail Against Home loans
But now, with the coming of Non-Banking Financial Companies (NBFCs) in India, one can get home loans at affordable interest rates. Moreover, there is a silver lining in the form of tax exemptions and benefits, making home loans less costly. The government provides many tax incentives that can substantially lower your tax obligation. In this blog, learn about some of the tax benefits you can avail yourself of against home loans in India.
If an individual has taken a joint home loan with their spouse or any other family member, they can both claim tax benefits on the home loan interest paid and the principal repayment. The co-borrowers can claim the deductions in the proportion of their share in the loan. This means that both co-borrowers can claim a deduction of up to Rs. 1.5 lakh each under Section 80C, and up to Rs. 2 lakhs each under Section 24.
Non-Banking Financial Companies (NBFCs) have emerged as an important source of credit for individuals looking to purchase a home. The significance of getting a home loan in India from NBFCs is they offer the best loan options that are both flexible and customised to suit the customers’ needs.