With a home loan, it is much easier to finance a residential property. Instead of making the entire payment towards the property, borrowers have the advantage of paying equated monthly instalments towards the loan. This makes owning a home or even constructing a property more affordable.
In addition to this, home loans also help save on tax
payments. There are provisions available to get rebates on the EMI that is paid
towards the loan each year. These EMIs are considered an investment and can be
deducted at the time of filing income tax returns.
What Tax Benefits Do Home Loans Offer?
There are provisions in the Income Tax Act that allow borrowers to claim rebates on the various components of the EMI paid towards the home loan. These EMIs consist of a principal amount and an interest component, both of which are eligible for rebates on the income tax of …