Tax Saving Properties

Your Home Buying Goal can help you reduce your total taxable income by up to

Here’s How?

Deduction U/S 80C up to 150,000

  • Stamp Duty
  • Registration Charges
  • Principle Repaid on Home Loan

Deductions U/S 24B up to 200,000

  • Home Loan Interest

Pari booked her first house in an underconstruction apartment complex in June 2015. The construction will complete in June 2018

Property Price: 50 Lakh

Total Home Loan Amount:
40 Lakh (at 80% finance)

Prior Period:
June 2015 to June 2018

  • Home Loan Interest Pari paid in
    “Prior Period”: 500,000
  • Home Loan Principle Repaid in
    “Prior Period”: Zero

Pari registers the apartment in
her name in June 2018, pays

  • Registration Charges: 500,000
  • Stamp Duty: 50,000
  • Home Loan Interest Paid in F.Y. 2018-19
    after the Construction: 280,000
  • Home Loan Priniciple Amount repaid in
    F.Y. 2018-19 after construction: 200,000

Total Amount Eligible for
Deduction to Pari in A.Y. 2019-20

  • For Home Loan Interest: 380,000
  • Stamp Duty: 50,000
    [380,000 = 280,000 + 500,000/5]
  • For Priniciple Repayment and other
    Expenses: 830,000
    [830,000 = 500,000 + 50,000 + 280,000]

Maximum Deduction Pari can Claim in A.Y. 2019-20: Pari

  • U/S 80C: 150,000
  • U/S 24B: 200,000
Note: The maximum deduction is limited by the section limit for the Assessment Year.

Other Deduction for Homeowners
U/S 24B

Interest on Loan for Repair

  • 380,000 for Self-Occupied Property
  • Total Interest Paid for Other House
    Properties (owned)
Note: While you may claim the whole interest payment as deduction, you can only set-off “Loss from House Property” up to Rs. 200,000 in one A.Y.

What if Your House
is Under Construction?

Zero deduction until house
is complete.

Consult us