Many people are not aware that home loans can also offer tax benefits. Under ITA (Income Tax Act), you can receive tax benefits on a home loan. According to three sections under ITA (that is, 88EE, 24, and 80C), as a borrower of a home loan, you may be eligible for the following tax benefits:
- According to Section 80EEA, a borrower can get up to INR 1.5 lakhs tax deduction on the interest amount,. This benefit will not be available after Mar 31, 2022.
- According to Section 24, a borrower can get up to INR 2 lakhs tax deduction on the interest amount.
- An additional INR 50,000 benefit can be availed for money paid towards stamp duty and so on.
Also, if you take a home loan with a co-borrower, there are extra benefits because each individual can separately claim these home loan benefits. Female co-borrowers also get additional tax benefits like discounts on interest rates.
Though these house loan benefits sound very interesting, sometimes it becomes hard to keep complete track of your transactions. So what is the solution? The solution is utilizing a home loan tax exemption calculator available on an online housing loan website.
Home loan tax exemption calculator
A house loan calculator is usually used to get the tax benefit amount estimated under ITA during the financial year.
If you think it is a cumbersome process requiring numerous details and your precious time, you are mistaken. To calculate how much tax benefit you can avail in one year, mention details like your debt liabilities, gross income, and other information required, and click on calculate.
Now you have an idea of a housing loan tax exemption calculator, let us understand how this calculator helps give you an estimate of your deduction.
Data that you need to provide to the house loan tax exemption calculator involves
- Profile type – general or senior citizen
- Annual income during the financial year
- Principal amount that is repaid
- Housing loan amount
- Tax deductions can claim
Once you enter all these details, you do not have to do anything. Click the ‘calculate’ button. After a few seconds, the house loan calculator will automatically display the approximate tax on reduction on your system screen.
Utilizing a tax exemption calculator for financial planning and other requirements
Home loans require a long-term commitment as it can take years to repay the lakhs you borrow. Home loans require a long-term commitment as it can take years to repay the lakhs you borrow. The repayment of a home loan can take years, as it takes years to repay, and it requires you to list the sources of your income and expenditure. Home loan calculators can help you with this as well.
It only takes a few simple steps, as outlined below.
- Go online and choose a housing loan EMI calculator.
- To get an exact estimate of the tax reductions you will get in the future.
- Enter all your EMI values, profile type, the principal amount you have repaid, and annual income.
- Now, click the ‘calculate’ option present on your screen.
- In a few seconds, you will see the result mentioning savings with a home loan and taxes before and after a home loan.
Yes, it is not that complicated, only a simple few steps to know how much tax benefits you can avail on home loan.
A House loan calculator not just helps you to calculate your tax benefits, but also helps to manage your budget. But, if you do not know much about home loans and are applying for one for the first time, researching for a reputed lender is the first and most crucial step. Choose an NBFC like Grihshakti to get an online housing loan plan suiting your requirements. It’s very easy to use and safe too.