Tax Saving Properties
Your Home Buying Goal can
help you reduce your total
taxable income by up to
350,000
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
Renovation
- 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.
