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How To Use Home Loan To Save Taxes

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The Axis bank home loan and many other loan holders have got a new benefit under which those who take personal and HUF loan loans will get a discount of Rs 2 lakh on the interest of home loan under Section 24, earlier this was 1.5 lakh rupees.

Many tax experts say, that we should take advantage of it. According to the expert, this rebate will apply to both the loan taken earlier and any new loan for this year. But this discount of home loan will be applicable only if you get a home loan. Also, under tax rebate on the home loan, taxpayers of different categories can get the benefit of up to 20000-60000 rupees.

The question is – has taken home loan from Indiabulls home loan, but now it is intending to take a loan from the father to repay it, will the benefit of section 24 be given on the loan taken by the father?


Expert – After repaying the loan taken from the bank, if you take a loan from your father, then you will get the benefit. But you have to pay the bank loan, it will be necessary to show the papers in which the information is that you have taken the loan from your father. In such a case, by showing loan papers from your father, you will get the benefit of tax rebate on interest under Section 24 of Income Tax. There is also a circular of CBDT regarding tax exemption on such loans. However, under Section 80C of Income Tax, you will not be able to get tax rebates on such loans. Because you get the benefit of tax exemption on loans taken from banks or financial institutions for interest exemption under 80C.

Question – Can a commercial complex be made on the grounds of father and uncle and will it be the loan from the bank for this? How will the benefit of exemption on this loan?

Expert – first became the owner of the land. For this, take a gift from a father or uncle or take a commercial lease on land lease, for which a bank can get a loan. Commercial project loan will be exempted on interest, but this construction will not get any discounts related to a residential housing loan.

The question is – bought a flat of Rs 30 lakh, which will be awarded in December 2014. Will tax relief benefit on this? Along with this, are the other preparations for buying a flat, will the other flat also be available?

Expert – Any time you get a pension within a year, you get tax benefits for the whole year. In case of buying another flat with a ready position, it is up to your wishes to get a benefit on any one of the flats. In general, benefits should be taken on the expensive flat.

But expert’s advice on this is that do not take the second flat in your name from the point of view of tax planning. This will result in loss of wealth tax and the loss will be incurred because the tax on deemed rental income will be charged. Take the name of another member of the second flat family, then it will be much better.