Easy tax concessions are a added bonus with your home loan. Purchasing a home has become the most sought after dream today. Our major salary can go in terms of repaying home loans. With property rates increasing day by day it is becoming more and more difficult to purchase a home even on loan. The principle amount is increasing and also the interest rate added puts a tight crunch on our monthly salary. Tax concessions and rebates come as a boon to lighten this burden a little bit.
Is it possible to get tax rebate on the loan amount? Many of us are not aware that this is taxable income money and one can avail rebate on a certain amount. If all returns are filed regularly and all criteria for applying for a home a loan fulfilled then one can avail on tax rebate for a certain amount of the money taken as loan.
The main criteria would be the loan has to be taken in the prior financial year and the project has to have a fixed date for completion. The possession of the flat has to be taken within three years since the flat loan has been taken.
The home loan consists of the principle amount and the interest amount. Tax rebate is possible on both these amounts. One can take a professional guidance from a tax consultant and other people who have gone for a home loan. There are certain rules for the amount applicable for tax rebate under all the sections of laws. A certain percentage of the total amount that can be taxable depends on the individual who can get rebates for PPF, Insurance and so on.
This opportunity offered by the government to apply for tax concessions on the total as well as interest amount helps to reduce the load of the repayment of the loan amount. Still many of us are not aware that they can get tax rebates and concessions on home loans, with principle as well as interest amount. Whatever money saved is money earned!