A "low interest" loan shouldn't mean you have very little interest in paying it back!
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  • Tax Benefits on Home Loan Reviews

    • Bank Bazaar Customer Support
      "Loan approval "
      0.5 5.0/5 "Blown Away!"
      The services at Bankbazaar was good and the process on the website is easy and quick. I received a proper response and the team was helpful to give me details of various banks. The offers are satisfactory and the follow up calls is also up to the mark.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jul 25, 2017
    • Bank Bazaar Customer Support
      "Hassle free"
      0.5 5.0/5 "Blown Away!"
      The services rendered by Bankbazaar has been perfect. I am happy as the response was provided on time and they were clear in giving me the details. I received follow up calls as well. The website is good and easy to navigate as well. The overall experience was really good and there were no hassles faced.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 24, 2017
    • HDFC Limited Home Loan
      "Response is good"
      0.5 5.0/5 "Blown Away!"
      HDFC LTD has done a good job, they contacted me on time and informed me the details. I had applied for a home loan. I could not proceed ahead because I was traveling and was not in town. I postponed the the plans. Not sure on the interest rate and charges.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 24, 2017
    • Bajaj Finserv Home Loan
      "Good. Can do better"
      0.5 3.5/5 "Pretty good"
      My home loan is from Bajaj Finserv. I am happy that they offered me a loan of 31 Lakhs. But the coordination during the process was not up to the mark. I expected the documentation process and the terms and conditions to be completely done at one shot. I had to submit the paper work one after the other and due to which the loan disbursement was delayed. The rate of interest was of 8.5% and there was a processing charges totally of 25K. There is a part payment option too.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 24, 2017
    • HDFC Limited Home Loan
      "Good experience"
      0.5 4.0/5 "Great!"
      I have earlier taken a home loan from HDFC Ltd and even closed it as well. That process was smooth and I never had issues in getting the loan and the closure was easy too. The interest rate and charges was normal and the documentation was also easy.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 24, 2017
    • Bank Bazaar Customer Support
      "Satisfactory services"
      0.5 4.5/5 "Excellent!"
      The services at Bankbazaar has been good and the overall experience was nice all through the process. I had no issues is accessing the website and the details on it is easily understandable. The process in getting connected to the banks is also swift.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 24, 2017
    • HDFC Limited Home Loan
      "Good overall"
      0.5 4.0/5 "Great!"
      I did not take the home loan from HDFC LTD because they were offering me a lower loan amount. They were willing to offer me only 28 Lakhs. So I went ahead with another institution who was offering me a better deal. The customer services and response was on time.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 24, 2017
    • HDFC Limited Home Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I had taken the home loan from HDFC Ltd. The process went good without any challenges. Even the interest rate is good. I had received excellent customer service and response from HDFC Ltd for my home loan process. I got loan without any hassles.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jul 24, 2017
    • Axis Bank Home Loan
      "very irritating"
      0.5 0.5/5 "Unacceptable"
      The agents are giving wrong commitments I was informed that i will be getting pradhan mantri awaz yojna benefits while sanctioning the loan and now at the time of disbursment in am asked to give my documents again to get the loan resanctioned to avail the PMAY benifits. This means that they want the processing fee again. Very good way of making money. Never take loan from them @axis bank. If you still have any humanity or customer service left, call on 7219609021 to resolve the issue
      Was this review helpful? 0
      , pune
      Reviewed on Jul 24, 2017
    • HDFC Limited Home Loan
      "Good deal"
      0.5 5.0/5 "Blown Away!"
      HDFC LTD has been really good in their services and process. I had taken my home loan from them and the documentation were very much normal. The disbursement of funds were done on time and the after loan services are also good. I got a good deal on the interest rate and charges.
      Was this review helpful? 0
      , vadodara
      Reviewed on Jul 24, 2017
    • SBI Home Loan
      "Easy and quick process"
      0.5 5.0/5 "Blown Away!"
      State Bank of India has offered me a home loan as well. The process to get the loan was not much. The documentation was simple and the disbursement happened on time too. The rate of interest and processing charges was also minimal for me. I had no hassles with the after loan services.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jul 23, 2017
    • Bank Bazaar Customer Support
      "Finance on phone Just click and tensions free"
      0.5 4.5/5 "Excellent!"
      It's very easy to contact any bank for any reqirement and also the information about best schemes were also provided. It's also shown our eligiblity. I also got a credit card before 4 2month and now also applied for a home loan Thank all for your response and the Team of Bank Bazar Best Bank service provider of India.
      Was this review helpful? 0
      , vadodara
      Reviewed on Jul 22, 2017
    • Bank Bazaar Customer Support
      "Very good service"
      0.5 5.0/5 "Blown Away!"
      I really appreciate bank bazaar.com, I am filling application online and we have don't face any issue we have completed form very normal and I see the result I am very glad to use the services of bankbazaar.com. Further, I would like to recommend my friend for this site.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jul 22, 2017
    • Bank Bazaar Customer Support
      "Service"
      0.5 2.5/5 "Just OK"
      Good services, quick response. Hope my requirements will be completed very soon. I suggest everyone to please go through the bankbazar.com for your requirements. Your dreams also will be fullfilled. Thanks to bankbazar.com hip hip hoore!!!
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 20, 2017
    • Bank Bazaar Customer Support
      "Process is so easy and comfortable"
      0.5 4.0/5 "Great!"
      It was a smooth process to apply, rather visiting different bank the experience over here was wonderful.The address and ID proof works amazing also here is no other competitors for bank bazaar and also instant loan application process is amazing. Lets hope for the best service and the result were very much satisfactory.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jul 20, 2017
    • Axis Bank Home Loan
      "Very good service"
      0.5 5.0/5 "Blown Away!"
      The axis bank had very good communication in regards to my home loan application. They have disbursed my home loan within 3 days of time. The customer service and the response was good with Axis bank. The required loan amount has been approved and disbursed by axis bank. I am happy with the loan amount. The rate of interest of interest is nominal with the axis bank. I am satisfied with Axis bank service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 19, 2017
    • ICICI Bank Home Loan
      "Very Pathetic experience with ICICI HOME LOAN Department"
      0.5 0.5/5 "Unacceptable"
      I had a very Pathetic experience with ICICI HOME LOAN Department as their employees not aware of process to be followed for home loan. They did not consider House Government Proofs. They have their own list according to which all property documents should be arranged. No Responsible employee in Kaushambi Ghaziabad branch. ICICI should take care of this. Same property has been loaned from SBI bank and PNBHFL was also ready to provide loan on same property. Very Bad Service from Kaushambi Ghaziabad Team. Take care if you approach this branch.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Jul 19, 2017
    • Axis Bank Home Loan
      "Worst Customer Service Experience"
      0.5 0.5/5 "Unacceptable"
      The worst possible way to get humiliated is when a Bank of choice for you for the past 6+ years decides that Customer service is for Fools. I was thrown around back and forth and was ignored on around 75+ calls made during a period of the whole of 2 months since my loan got sanctioned and the Bank has no response at all. And after 2 months they come back and say We can't process the loan. Does Axis bank think the customer is taken for granted just because they invested in the eco-system? I am closing the Salary accounts and Credit Cards I hold with the bank as they have lost all goodwill from an ardent customer. So in Axis bank's terms 15 working days = 2 Months in Communication Isolation. Worst Customer Service Experience Ever.
      Was this review helpful? 0
      , cuddalore
      Reviewed on Jul 19, 2017
    • LIC Housing Home Loan
      "HIGH Interest rate and NO service"
      0.5 0.5/5 "Unacceptable"
      After 5 years of fixed rate of interest tenure, without any notification or information LICHFL started charging sky high interest, which nowhere near to market rate. When contacted they asked to pay Rs 1050 and I had to fill and submit manual form, which is added head ache. After that also the rate of interest is quite high than the market rate. Again after one and half year, they are asking to submit manual form to their office and pay Rs 1180, to correct the interest rate. This rate is also quite high than the current market rate. YOU WILL END UP PAYING MORE INTEREST AND CHARGES FOR SURE. I would NOT recommend to take home loan from LICHFL.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 19, 2017
    • Bank Bazaar Customer Support
      "Great Service"
      0.5 4.0/5 "Great!"
      It was a great service provided by you, I could compare loans terms of different banks in a single window. I need not to go any where for applying loan in my busy schedule. I will like to give it excellent, but I have uploaded my bank statements 3 times as I got some error . It would be great if I had received calls with in two hours as promised in the site, other wise it was a great service provided by them.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jul 18, 2017
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    Tax Benefits on Home Loan is Rated as "Great!" by 22759 Users

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    Home Loan BYTES FROM OUR KITCHEN

    Overview:

    Buying your own home is really expensive and for some of us it’s a dream out of reach. But with a home loan, we can all achieve this dream whether it’s buying a house or constructing one. Home loans are a credit line bearing lower interest rates and long-term tenures so that you can pay the loan amount back with ease. An added bonus is that they are eligible for tax benefits too, so the burden is lesser on you while you repay your loan.

    Home Loan Offers

    Tax Benefits on Home Loan – Budget 2016

    The government had announced some tax benefits as part of the 2016 Budget such as extra deductions, relaxation in time period for interest deduction claims, etc. While planning their taxes for 2016-2017, home loan borrowers should remember to claim these extra benefits (if applicable).

    Tax Benefits:

    The following are the additional tax benefits that were announced during the 2016 Budget:

    • Additional Deduction – People who borrow home loan for purchasing their first home in 2016-2017 can claim an additional deduction of up to Rs.50,000 under Section 80EEE of the Income Tax Act. At present, home loan borrowers who pay loan interest from their gross salary can claim interest deduction of up to Rs.2 Lakhs p.a. under Section 24. They can claim this deduction only if they self-occupy the property for which they took the loan. The additional deduction of Rs.50,000 mentioned above can be claimed above the Rs.2 Lakhs limit. The following conditions apply to this additional deduction:
      1. It is available for first time home purchasers.
      2. It applicable only if the property for which the loan is taken is occupied by the borrower himself/herself.
      3. Rs.50,000 p.a. is a the maximum additional benefit.
      4. The loan amount should not be more than Rs.35 Lakhs.
      5. The value of the property for which the loan has been borrowed should not be more than Rs.50 Lakhs.
      6. The loan must be availed between April 1st, 2016 and March 31st, 2017.
    • Relaxation in Time Period – In the 2016 Budget, the government increased the time for claiming interest deduction. Earlier, the deduction was applied only in case where the construction or acquisition was completed in 3 years, starting from the date of availing the loan. The 2016 Budget increased this period from 3 to 5 years.
    • Benefits for People Not Receiving HRA – If a person is not given HRA (House Rent Allowance) by his/her employer, then under Section 80GG, he/she can claim deduction of the amount he/she used to pay rent, provided the amount used to pay rent exceeds 10% of his/her annual income. Earlier, he/she had to ensure that the extra expenditure was not more than Rs.2,000 per month or 25% of his/her total income (whichever has the lower value). The 2016 Budget, increased the deduction limit from Rs.2,000 per month to Rs.5,000 per month.

    These are the extra benefits that all home loan borrowers should keep in mind while claiming their taxes in 2016-2017 in order to save money.

    Tax Benefit on Home Loan:

    Home loans are eligible for tax benefits under three sections of the Income Tax Act. Your home loan consists of two components: Principal and Interest. You may be eligible to claim tax benefits for these components based on certain criteria. Firstly, you must be the owner, or a co-owner and co-borrower in the case of joint home loans.

    Tax Benefits on Home Loan

    Principal amount under Section 80 C - an Individual or an HUF (Hindu undivided family) can claim tax benefits on the principal repayment of a loan.

    • Stamp duty and registration charges are also eligible for deductions.
    • Life Insurance Premium, NSCs, EPF, ELSS can be claimed along with the home loan, subject to an overall deduction of Rs. 1 lakh in a year.
    • Commercial property and home renovations or additions on existing property is not eligible under Section 80C.
    • The loan should be taken from banks, HFCs, Central & State governments, LIC, NHB, Public Company or a Public Sector Undertaking.

    Interest payment under Section 24(b) – it allows for tax deduction on interest payable on a loan taken to buy or construct a house.

    • You can also claim this benefit for repair or reconstruction of an existing property.
    • Processing fees and prepayment charges will also be treated as interest payment.
    • This benefit is available for residential and commercial property as well.
    • Owners of let-out properties can claim full interest payment, but exemption for self-occupied properties is restricted to Rs. 1.50 lakhs per annum.
    • This tax benefit is also applicable for loans taken from friends and family.

    Deductions under Section 80EE – For loans sanctioned between April 1, 2013 and March 31, 2014, an additional tax benefit is provided to first-time homeowners.

    • The property should be valued at Rs. 40 lakh or less.
    • The loan amount should be Rs. 25 lakh or less.
    • This deduction can be claimed only in 2013-14 and 2014-15.
    • You can claim up to a maximum of Rs. 1 lakh.

    Tax benefit on second home loan:

    If you plan on purchasing or building a second home, one property will be marked as self-occupied and the other will be deemed a let-out property. Both properties are eligible for tax benefits.

    • For the let-out house, you can claim deductions only on the interest payment.
    • There is no restriction on the maximum amount.
    • Taxes paid to the local authorities, namely municipal taxes can be filed for tax deductions in the financial year in which they are paid.
    • 30% of the annual value of the property is eligible for deductions for repair and maintenance charges.

    How to calculate tax benefit on home loan:

    The easiest way to calculate your tax benefits on home loan is by using an online calculator. Simply enter your home loan details and click on calculate and a detailed tabulation will pop up. The details you will generally need are:

    • Loan amount
    • Tenure
    • Interest rate
    • Loan start date
    • Gross annual income
    • Existing deduction under 80C/D

    FAQs:

    1. Can I claim tax benefits if I3plan on constructing the house and selling it in a few years?

      If you sell the property within 5 years of possession, any tax deductions already claimed will be reversed. However the tax exemptions on interest paid will remain unchanged.

    2. Who is eligible to claim tax deductions on home loans?

      The owner of the property can claim tax benefits. If the spouse is a co-borrower, they can also file for tax deductions. In the case of a joint loan, both parties can claim for their share of the loan they pay.

    3. The property I purchased with a home loan is still under construction. Can I claim tax benefits?

      You cannot claim tax deductions till the construction is completed. Once it is completed, you can claim an aggregate of interest paid for the period prior to the year of taking possession. This can be claimed in five equal instalments from the year in which construction is completed.

    4. Can I claim tax benefits on loans from friends?

      You can claim for tax deduction under Section 24(b) only for the interest paid. The friend will have to provide you with a certificate and will be liable to pay tax on the interest earned from the loan.

    News About Tax Benifits on Home Loan

    • Taxes to be paid on home purchases, according to Tax department

      Now, most of us already know that purchasing a home requires you to pay a number of taxes. But, for some people this has been a little unclear.

      As per the tax authorities, the taxes that need to be paid are as follows:

      Registration charges

      Stamp duty

      Service tax

      Value-added tax

      Once after paying these charges will a property be registered by the government.

      18th April 2017

    • Government reduces benefits on tax

      Tax benefits have been cut down by the Government. According to the new tax laws, the borrower can deduct the whole loan amount after the rent has been adjusted. Borrowers of the self-occupied properties can avail a deduction of Rs.2 lakh on home loan interest repayment.

      The amount that is beyond Rs.2 lakh can be carried forward to eight consecutive assessment years. As the interest component of the HL is higher during the initial years, financial experts state that borrowers might not be able to adjust the deduction with the interest paid.

      4th April 2017

    • New Income Tax Rule on Home Loans

      After the announcement on the New Year’s evening about changes to the home loan policy, Prime Minister Narendra Modi had also announced Pradhan Mantri Awas Yojana that offers subsidy on interest rates for home loans. The government is also going to cut down tax benefits that borrowers availed on properties let out on rent. With effect from 1st of April, the interest paid above Rs.2 lakh can be carried forward for next eight assessment years. There are many more Income Tax rules that are introduced for the reality sector. With the implement ant of Credit Linked Subsidy Scheme for Middle Income Group (MIG), it will interest to see the improvement of realty sector in India.

      3rd April 2017

    • Availing a Home Loan Comes with Tax Benefits

      Individuals who avail a home loan with the intention of going ahead and purchasing a home can make the most of a number of tax benefits. The most common tax benefits associated with availing a home loan include deductions under Section 80C of the Income Tax Act, wherein individuals can claim up to Rs.1.5 lakhs as deduction on repayment of the principal amount borrowed.

      The next benefit that can be availed by purchasing a home after taking a home loan is deductions under Section 24 of the Income Tax Act, where in a tax deduction can be claimed to the extent of Rs.2 lakhs on the interest component related to the repayment of the home loan. Such a benefit can be claimed provided the borrower and his/her family live in the property or in case the property has been left vacant. But if the property were rented out, deductions can be claimed on the whole interest component. In case an individual has availed a home loan together with a member of the family, both individuals are eligible to claim deductions on the interest component, subject to a maximum of Rs.2 lakhs per individual.

      Another tax benefit associated with availing a home loan to purchase a home is deductions under Section 80EE of the Income Tax Act, wherein individuals who are purchasing a home for the very first time are eligible for tax deduction in case the value of the home loan is under Rs.25 lakhs, and the value of the property is under Rs.40 lakhs. Moreover, individuals who purchase a home for the first time have no requirement that compels them to occupy the property themselves if they wish to make the most of the aforementioned deduction.

      5th March 2017

    • Union Budget 2017 - Realtors are expecting increase in tax deduction limit for home loans

      The Union Budget 2017 will be presented on the 1st of February, 2017. The real estate market in India is expecting positive changes to rise against the demonetization situation that impacted the entire nation's economy. The Reality is expecting the government to increase the tax deduction limit on home loans that will welcome borrowers to come forward in buying a house. The announce of 'Housing for all by 2022' has made the real estate market more interesting, considering that fact various schemes have been introduced to promote housing, the real estate market has a lot to look forward to from the Budget 2017.

      30th January 2017

    • A rise in tax rebates on home loans expected in 2017 Union Budget

      The 2017 Union Budget is expected to be presented on February 1st. According to a report by CNBC-TV18, the budget is expected to be taxpayer-friendly to balance the cash shortage brought about by the demonetisation of high-value notes last November. The budget is expected to be centered on agriculture, MSME and housing sectors to balance the impact of demonetisation. According to a study by All India Manufacturers Organisation, there has been a 35% job loss and 50% revenue decline in the small scale industries post demonetisation. An increase in tax rebates on home loans will help the banking sector and the sluggish real estate market.

      16th January 2017

    • Tax Benefits on Home Loans

      The Income Tax Act provides for deductions in respect to home loan interest rates and principal under Section 24(B) and Section 80(EE). Section 24(B) of the Income Tax Act provides for a tax deduction on interest paid for Home Loans. Interest on Home Loan is permitted as a tax deduction on accrual basis and not on a paid basis, even if the books of accounts are maintained on cash basis. The tax deduction on the interest on home loan can be claimed only if the capital amount borrowed has been utilized for construction, purchase, renovation, repair or reconstruction of a commercial or residential property. Under this definition interest includes service charges, commission, brokerage, prepayment charges, etc. A deduction will not be provided for penalty on unpaid interest. A deduction will be provided for both personal loans as well as home loans taken from any institution or person. If a person pays the sale price of the property to the seller in instalments with interest and does not raise the funds from a third party, the interest paid by him/her is also a permitted deduction. Interest on money borrowed which is payable outside India is not permitted as a deduction under Section 24(B), unless the tax on the same has been paid or deducted at source to in respect of which there is no person in India who may be treated as the recipient for such purpose. For claiming a deduction under Section 24(B) the assesse should be the owner or deemed owner of the property and the loan should be in the assesse’s name. The maximum deduction provided for self-occupied property is Rs.2 lakh and there is no limit of deduction for let-out property. Under Section 80(EE) of the Income Tax Act, persons who are first-time homebuyers can claim a further deduction of a maximum of Rs.1.5 lakhs if the loan is sanctioned by a financial institution between April 1st, 2017 and March 31st, 2017 and does not exceed Rs.35 lakhs. The value of the residential property should not exceed Rs.50 lakhs to be eligible for deductions under Section 80(EE). Please note that an individual may only claim tax deductions under either Section 24(B) or Section 80(EE), not both.

      11th January 2017

    • Housing society certificate sufficient proof of occupancy for home loan tax sop

      A tax deduction of up to Rs.2 lakh per year can be claimed for interest paid on housing loans. This deduction is applicable to any individual taxpayer who has taken a loan to procure a residential property which is self-occupied. The deduction can be obtained by an individual if the property is in the possession of the individual five years from the end of the financial year in which the loan was taken. The stipulated tenure of five years has been increased for the financial year 2016 – 17. Individuals will need to submit an Interest Certificate and a Certificate of Occupancy. The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) ruled that a certificate from the hosing society to validate occupancy should be sufficient proof of occupancy to claim this deduction.

      9th December 2016

    • 100% rebate on property tax to owners who suffered in Jat Quota Stir

      Haryana government has decided to offer a rebate of 100% on property tax to property owners who have suffered property loss or damage in the Jat Quota riots. These include all commercial, residential and institutional property owners. The rebate is applicable for a period of one whole year starting from April 2016 to March 2017.

      Apart from this the Haryana State Government has already waived off electricity bills of people whose properties were affected (or looted) during the Jat quota struggle that happened in February 2016. Collection of property tax still is a huge challenge for state governments across the country. The ever-growing real estate has added fuel to this by making construction-tracking even more difficult for the tax department.

      24th June 2016

    • Form 12BB introduced to claim LTA, HRA tax rebate

      A standard Form 12BB to claim income tax rebate on LTALTC (Leave Travel Allowance Concession), HRA (House Rent Allowance) and interest towards home loans has been introduced by the income tax department. Taxpayers will have to submit proof of travel to their employers in the form in order to claim LTALTC benefits.

      In case the taxpayer is paying a rent higher than Rs.1 lakh in a year, details such as name, address and landlord’s PAN number should be provided to the CBDT (Central Board of Direct Taxes). For a claim for tax rebate on home loan interest, the lender’s name, PAN details and address have to be furnished.

      9th June 2016

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