I'm joining my first job soon and I'm thinking of buying an apartment using home loan. How and what tax rebate I can get?
Dear Sharvan, Congratulation for your new job. As per the provision of income tax act 1961, if you purchase the house by taking a house loan from the financial institution than you should repay such loan and interest to the respective financial institution by EMI. so you get the deduction of principal (loan) repayment under section 80C of the maximum amount of rs 150,000/- and also you pay interest to the respective financial institution than such interest is consider as house property loss and eligible to get deduction from your salary income of maximum amount of rs 150,000/-. Ex: let say your salary is rupees 500,000/-. during the year you repay the principal amount of loan of rs 200,000/- and interest of 250,000/-. than the principal amount is get deduction u/s 80 c of rs 150,000/- and house property of rs 150,000/- so your tax liability is nil. Any other query feel free to contact us. Writer CA Chitranjan Agarwal