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Top Facts To Know About Home Loan And Taxes

The Government of India offers home loan tax benefits to individuals who take a loan to purchase their first house

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Home loan is a thing which is required for everyone at least once in their life to fulfill the wish of owning a house.
Many people are used to considering the home loan as a loan with the help of which we can purchase a house. Pixabay

The Government of India offers home loan tax benefits to individuals who take a loan to
purchase their first house. The aim is to provide a boost to the real estate market and encourage individuals to own homes. You can also avail tax benefit on the interest paid on all your home loans, regardless of whether it was for your first home or not. Let us take a look at the various scenarios involved:

Deduction for principal repayment
Under Section 80C of the Income Tax Act, the actual principal repaid towards your home loan can be claimed as a deduction. The deduction is available for your first home. The deduction is also applicable to a rented home when the owner is staying in a different town for work. The maximum deduction available under Section 80C is ₹1,50,000. The limit is raised to ₹2,00,000 for senior citizens.

loan, home, tax, India, purchase
The aim is to provide a boost to the real estate market and encourage individuals to own homes.

Deduction for interest paid on a home loan
Income tax benefit on home loan also includes deduction on the interest paid under Section 24 of the Income Tax Act. If the construction of the home was completed within five years of the loan disbursal, actual interest paid up to ₹2,00,000 are allowed as a deduction when calculating the taxable income for the individual. The cap is increased to ₹3,00,000 for senior citizens if the loan was for a self-occupied first home. If the construction of the home is not completed within five years, the tax exemption is allowed up to ₹30,000 only.

Additional deduction under Section 80EEA
Under Section 80EEA, an additional deduction of ₹1,50,000 can be availed if the loan was for the purchase of an affordable house under ₹40 lakh till March 2020. Again, this deduction can only be availed for a self-occupied first home.

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Additional deduction under Section 80EE
If you have taken a loan for your first home after 1st April 2016, you may be eligible for an
additional deduction of ₹50,000 under Section 80EE of the Income Tax act. You can avail this deduction if your home finance was for less than ₹35,00,000 and the value of the property was under ₹50,00,000.

Deduction for interest paid pre-construction
Deduction on home loan interest rate is only available after completion of construction or
immediately on the purchase of a fully constructed house. But the EMI payments would start as soon as the loan is disbursed. You could still claim Income tax benefit on home loan interest paid during the construction phase – you would do this after the construction has been completed. The interest paid can be claimed in equal parts for five financial years post-completion, up to a maximum of ₹2,00,000 per year. The limit includes both the interest paid in the current year and the deduction being claimed for the interest paid during the construction of the property.

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Vivo Unveils New V17 in India For Rs 22,990

The smartphone packs 8GB RAM+128GB storage and will be available in Midnight Ocean and Glacier Ice colours

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Vivo V17
The Vivo V17 is powered by the Qualcomm Snapdragon 675AIE processor, which requires low power consumption. IANS

Refreshing its V series in India, Chinese handset maker Vivo on Monday launched its Vivo V17 smartphone in India with quad-camera set up for Rs 22,990.

The smartphone houses a 32MP front camera which is placed into in the “iView” display with E3 super AMOLED screen.

“V17 is the latest addition to our flagship V series which has been phenomenal for vivo’s success in the Indian market. Centered on innovation and customer-first philosophy, Vivo’s V series has introduced quite a few industry-first features and we continue to bring the best for our customers at best price points,” Nipun Marya, Director Brand Strategy, Vivo India, said in a statement.

The smartphone packs 8GB RAM+128GB storage and will be available in Midnight Ocean and Glacier Ice colours.

It will be avilable starting December 17 on Vivo India E-store, Amazon India, Flipkart, Paytm mall, Tatacliq and Bajaj Finserv EMI Store, and across all partner retail stores.

The smartphone’s quad rear camera set up consists of a 48MP main camera, an 8MP super wide-angle camera and 2MP macro camera and 2MP bokeh camera.

The customised super AMOLED display is made of the latest E3 OLED and features an aspect ratio of 20:9.

Vivo V17
Refreshing its V series in India, Chinese handset maker Vivo on Monday launched its Vivo V17 smartphone in India with quad-camera set up for Rs 22,990. Wikimedia Commons

It also offers 100 per cent DCI-P3 colour gamut and according to the company, the smartphone filters out 42 per cent of blue light.

The Vivo V17 is powered by the Qualcomm Snapdragon 675AIE processor, which requires low power consumption.

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The smartphone runs on a 4,500mAh battery that comfortably lasts all-day long despite intensive usage coupled with Dual-Engine fast charging technology. (IANS)