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12 January 2011

Easy Income tax Benefits on Home Loans

It is observed that there are income tax benefits on the loan amount and this helps to ease down a little bit the pressure of repayment. Many builders publicise the fact that loans on their constructions have tax benefits and the borrower is lured by this plus point in buying the flat.
According to 80C clause the taxable income benefits are availble to the home loan taker. They can avail tax benefits as this is the taxable income. But the most important point that is not explained by any one is that only homes that have completed construction and the buyer takes possession of the flat then they can apply for tax benefits. If the building is under construction and the borrower has taken a loan he does not get any tax benefit on the loan amount untill he takes possession of the flat.
There are certainly many benefits in taking loans from reputed financial institutions and every lender has their own rules and interest rates applicable to the home loans. One can plan buying of the flat from certain reputed builders and even those buildings that are under construction. It is important to not ethe past history of the builder and their past successful projects.
Financial planning is essential to avail tax benefits on the loan amount. One can consult a tax consultant before going in for a home loan and consider all the aspects for choosing the best home loans.

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