The new Section 80 EEA in the Union Budget 2019 increases the tax benefits of the interest deduction up to Rs 1,50,000 for housing loans availed for affordable housing between 1 st April, 2019 and 31 st March, 2020. However, the individual taxpayer should be a first-time home buyer who is not eligible for the Section 80EE tax deduction. For interest on home loans the tax benefit is available under Section 24(b). For a maximum of two self-occupied properties taken together, you can claim upto Rs 2 lakh in a year towards interest. To claim the home loan tax benefit under this section, the following conditions need to be met:-. The loan should be less than or equal to Rs.35 lakhs. Also, the property’s value should not exceed Rs. 50 lakh. On the date the loan is sanctioned, the individual should be a first-time house owner. Deductions under Section 24 Under Section 24 of the IT Act, you can claim tax benefits of up to Rs.2 lakh. However, you must covert the plot loan to a regular home loan to avail the benefits. The process to covert a plot loan to a regular home loan is simple and can be done once the construction has been completed. Deduction for state and local taxes paid:, it allows taxpayers to deduct up to $10,000 of any state and local property taxes plus either their state and local income taxes or sales taxes. Deduction for mortgage interest paid: Interest paid on the mortgages of up to two homes, with it being limited to your first $1 million of debt. Union Budget 2023 made the new tax regime attractive by reducing rates. You have two options: continue with the old regime and keep taking tax deductions, or opt for the new one (lower taxes) but don’t avail of deductions. The new tax regime will be advantageous for salaried people, unless they can claim tax deductions of Rs 4.25 lakh or more. You can file ITR-1 with your home loan details with interest on your home loan. Under the personal information tab, fill in all your personal and income details including your home loan details. In the income sources tab, input all of your taxable salaries. Find the taxable income in your Form 16 and enter the information of your employer and In India, a first-time homebuyer has the opportunity to benefit from a deduction of up to Rs. 1.50 lakhs under Section 80EEA of the Income Tax Act when purchasing an affordable property. This particular deduction is in addition to the initial and basic deduction available under Section 24 (b) of the Act. As a result, the combined annual tax Home loan: Please note that there is no similar provision for reversal of interest benefit claimed under Section 24(b) in the past in case one sells the house within five years from taking the The income tax law also allows you tax benefits in respect of principal repayment of loans taken for the purchase or construction of residential houses from banks and specified financial institutions. Dr9IhPC.