Under the Income Tax Act, home loans provide the taxpayer with benefits such as reduction in tax liability. A home loan can be divided into two parts: Interest and Principal. In order to claim benefits, one must be the owner or co-owner of the property. Property should be held by the tax payer for a minimum of 5 years. Things you must know about tax benefits on home loan. 1. Home loan borrowers are entitled to tax benefits under Section 80C and Section 24 of the Income Tax Act. These can be claimed by the property’s owner. 2. In the case of co-owners, all are entitled to tax benefits provided they are co-borrowers for the home loan too. The aforementioned sections for home loan tax benefits are already in place in 2020 and are most likely to continue going forward this year. However, the Modi Government is expected to relax the eligibility criteria for available tax rebates under Section 80 EEA. 1. Rent income claimed by me, home loan tax benefit claimed by husband. 2. Rent income claimed by husband, home loan tax benefit claimed by husband. 3. Rent income and home loan tax benefit jointly claimed. P.S I may be paying a meager tax since I worked only part of the year and so do not really need the home loan benefit. Under section 24 of the Income Tax Act, you are eligible for home loan tax benefit of up to 2 lakhs for the self-occupied home. In case you have a second house, the total tax deduction on home loan for two homes should not exceed 2 lakhs in a financial year. If it is a let-out property, you do not have any maximum limit for claiming interest. Even if the bank issues a single certificate for a joint home loan, the individual co-borrowers can claim the tax benefits in the ratio of their share in the home loan. Please note that the 1. Deduction On Home Loan Interest. One of the significant tax benefits of mortgage loans is the deduction available on the interest paid towards the loan. Under Section 24 (b) of the Income Tax Act, 1961, borrowers can claim a deduction of up to Rs. 2 lahks per financial year on the interest paid on home loans for a self-occupied property. 2. Homeowners who installed solar panels, geothermal heat systems, and wind turbines in 2020 and 2021 may receive a tax credit worth up to 26% of the cost. In August 2022, Congress increased this 07vk.