Finance Minister Nirmala Sitharaman presented the Union Budget 2020 on February 1st 2020. This Budget had a tax bonanza for home buyers. This cannot be a better time if you are looking for that first house. Real Estate prices are down. Banks are cutting home loan rates.
SBI and Bank of India have cut MCLR. SBI has reduced MCLR from 7.9% to 7.85%. Bank of India has cut MCLR by 10 bps. This is for maturities up to 6 months. MCLR is the minimum rate below which the bank cannot lend.
What did the Union Budget 2020 have for first time home buyers? Let’s find out. Want to know more on Home Loans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
You get a deduction on home loan interest payments under Section 80EEA up to Rs 1.5 Lakhs a year. This is over and above the existing home loan interest deduction of Rs 2 Lakhs a year under Section 24. This is a total deduction of Rs 3.5 Lakhs a year on home loan interest repayments. The Finance Minister has extended the Section 80EEA benefits till March 31st 2021.
You and other home buyers indirectly benefit from the tax holiday builders get from affordable housing below Rs 45 Lakhs. The Section 80-IBA tax benefit has been extended up to March 31st 2020.
You and spouse can avail a joint home loan and enjoy tax benefits under Section 80C and Section 24 individually. This means both you and spouse can avail Section 80C and Section 24 benefits separately, doubling the tax benefit. Tax benefits on joint home loans are available to all co-owners. You must be a co-owner to get the joint home loan tax benefits. You must also be a co-applicant as per loan documents.
See Also: How to Select the Best Home Loan?
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