Think Luca Solutions Inc.

Discussion:- Deduction from Income for payment of Interest on Home Loan:-

1. Tax Benefits on first Home or Self Occupied:

Those with self-occupied property, are currently allowed to claim interest paid up to Rs 2 lakh on home loan. This is due to deduction from other parts of income such as salary income or income from any other source only if the construction of the house is completed within 5 years from the end of the financial year in which loan is taken, or else Rs. 30,000.

2. Tax Benefits on Rented House:

When it’s about rented house, 30% of the rental income which is like the standard deduction plus municipal tax paid on the house and interest paid on the loan taken for that house are allowed as deductions. After all these deductions, most of the times the rental income zero’s down and is then termed as loss from house property. In the financial year 2017-18, this loss is presently allowed to be set off against other parts of income such as salary without any limit.