To buy a house and creating an asset is a big step for everyone. Again to b a surprise, searching for a house that fits within the budget is not short of a struggle. The next step after searching the right property is to choose the right loan and apply for a home loan for buying the property. Finally, after all the hazardous process when the borrower settles in the new house, there comes the major concern for all the family members – repayment of loan amount. The borrower always wants to avail the best deal for the loan borrowed from the Banks/ NBFC’s in terms of equated monthly installment (EMI), interest rates, tenor and other terms and conditions. Even after availing the best deals on home loans and monthly EMI’s, the tax deductions can put a big hole in your pockets.
There are some unknown facts related to tax benefits that can help you to be at ease if you have to repay a home loan. We have come forward to disclose those unknown facts that will let you avail you those tax benefits which you often miss.
If you move ahead and take the actions to avail the tax benefits it is important to understand that no deduction is allowed against the principal amount during the pre–construction period. Even if in case you have paid the interest during the pre-construction period, it can be claimed by you for the period of five years which starts after taking the possession of the new house.