I have opted for SBI Max Gain. My question –
1. Whether I am eligible for Section 24: Income Tax Benefit on Interest on Home Loan ?
The maximum tax deduction allowed under Section 24 of a self-occupied property is subject to a maximum limit of Rs. 2 Lakhs .
Currently the property is in Under Construction stage.
2. Tax certificate provided by SBI comprises of what all details ?
Kindly suggest what all options are available to me for getting the Tax exemptions ? I have recently bought the first home, loan amount 24 Lakhs, property price-34 lakhs.
During pre-construction period, there will not be any tax benefits under Sec.24. Once it is over then you can claim the tax benefits of all such interest paid into 5 equal installments immediately after the possession of property. Construction period must be less than 5 years.
OK. As per my loan amount and property cost ( 24lacs loan, 34 lacs property cost) , am I eligible for tax exemptions under section 80EE ?
Property is in under construction.
Tax exemption of rs. 50000 , under new govt budget passed fr 2016-17 ?
If you claim benefits of interest you paid under Sec.80EE, then the same interest can’t be claimed for tax benefit under Sec.24. Also, the maximum benefit under Sec.80EE is either the interest paid by you to housing loan or Rs.50,000, WHICHEVER IS LESS.
So you mean to say i can avail either section 80EE tax rebate service or Section 24 tax benefit for interest paid, not both ?