I’m already having home loan running from HDFC Ltd..Would like to take home renovation loan and not a top up loan for painting,grill and some structural change work.
Can i get income tax benefit for home renovation loan
There will not be any tax benefits on principal repayment. Hence, you can’t claim any benefit under Sec.80C. However, under Sec.24, tax deduction on the interest paid of up to Rs. 30,000 is allowed on home improvement loan. In case of self-occupied property, this limit will be part of the overall tax deduction limit of Rs. 2,00,000 towards interest repayment allowed under section 24.
If the home improvement loan is taken for the second home, you can claim tax deduction on interest repaid of upto Rs. 30,000 over and above the interest repayment of your home loan.