Tax Benefits on Your Home Loan
Save more with your home purchase!
When you finance your Lotus Group home, you can enjoy attractive tax benefits on both principal repayment and interest paid, as per the Income Tax Act, 1961.
Tax Benefits Available to Home Loan Applicants
Deduction on Interest Paid (Section 24(b)) :
Self-Occupied Property:
Deduction up to ₹2,00,000 per annum on interest paid on a home loan for a self-occupied property.Let-Out / Rented Property:
The entire interest amount paid on the housing loan is allowed as a deduction.Pre-Construction Interest:
Interest paid during the pre-construction period is allowed as a deduction in five equal instalments, starting from the year in which the property is acquired or construction is completed.
Deduction on Principal Repayment (Section 80C) :
Deduction up to ₹1,50,000 per annum on repayment of the principal amount of the home loan.
This limit also includes stamp duty and registration charges paid for the purchase of the residential property.
Capital Gains Tax Relief on Property Transfer
Sale of Residential Property (Section 54) :
Applicable to Individuals and Hindu Undivided Families (HUFs).
The residential property must be held for at least 36 months.
Capital gains are exempt if reinvested in:
Purchase of a residential house in India (within 1 year before or 2 years after sale), or
Construction of a residential house (within 3 years from sale).
If capital gains are not fully utilised before the return filing due date, the unutilised amount must be deposited in the Capital Gains Account Scheme, 1988.
Sale of Capital Assets Other Than Residential Property (Section 54F) :
Applicable when long-term capital gains arise from the sale of any asset other than a residential house.
Exemption is available if gains are reinvested in:
Purchase of a residential house (within 1 year before or 2 years after sale), or
Construction of a residential house (within 3 years from sale).
The assessee must not own more than one residential house (other than the new house) on the date of transfer.
Deposit of unutilised gains in the Capital Gains Account Scheme, 1988 is mandatory if not utilised before return filing.
Investment in Specified Bonds (Section 54EC) :
Capital gains from the transfer of any long-term capital asset can be exempt if invested within 6 months from the date of transfer.
Investment must be made in notified bonds issued by:
National Highways Authority of India (NHAI)
Rural Electrification Corporation Ltd. (REC)
Maximum investment limit: ₹50 lakh per financial year.
Bonds must be held for a minimum of 3 years.