I am 38 years and reside in Belagavi. I had availed a home loan of INR 50 Lakhs about 3 years ago and have been regular in repayment. In the last financial year, I missed an EMI payment because of financial difficulties. My friend has told me I won't get tax benefits on the home loans even if I miss a single EMI. Is this true? Please advice
You get a tax deduction on the EMI (Interest) on your home loan, up to INR 2 Lakhs a year, under Section 24. Section 24 of the I-T act mentions the word interest payment "payable" on housing loan. This means that even if you have missed the EMI payment in a year, you can still claim the tax deduction on it, provided there is an interest liability. Keep this in mind if you have missed an EMI payment: 1. Always keep an interest certificate issued by the lender (Bank/NBFC). This is very useful if you are questioned by the tax department. 2. The principal repayment deduction under Section 80C is available only on actual repayments.