Major Tax Benefits You Should Claim on Your PNB Home Loan
Do you plan to take a PNB home loan? Favourable interest rates and loan repayment flexibility are among the benefits of a PNB housing loan. You are also allowed tax benefits when you buy a ready-built or construct a house using a home loan.
The Income Tax Act of 1961 allows you to claim a deduction during and after the construction period. You are allowed tax deductions equal to five annual interest instalments during the pre-construction period.
Need help knowing where to begin and claim tax benefits on your home loan? In the following section, we have discussed the various home loan tax benefits you can get with PNB Housing.
Different Types of PNB Home Loan Tax Benefits You Can Claim
The four different types of tax benefits on PNB Home Loan are explored below.
Tax Deduction on the Repayment of Principal Loan Amount
Do you want to own a rental or self-occupied property? You qualify for a deduction of up to Rs. 1,50,000 yearly from your taxable income. The deductions include the paid stamp duty and registration fees, which you can claim once.
Remember, your property has to be fully completed to make a claim. You should also avoid selling your home with five years of possession to qualify for tax deductions.
Tax Benefits on Payment of Interest
A PNB home loan attracts interest. You may claim tax benefits on the interest you pay on a home loan.
Is your home self-occupied? If yes, you’re allowed a maximum tax deduction of Rs. 2 lakh from gross income annually.
When you have two homes built or bought through a PNB home loan, you can claim tax benefits of up to Rs. 2 lakh.
Have you bought or built property for renting out using a home loan? Then, no limit on the interest you may claim as tax benefits.
Did you pay interest on a home loan used to purchase, repair, construct or reconstruct the property? You can claim all the interests paid in the form of tax benefits.
Tax Benefits for a Joint PNB home loan
Adding a co-applicant allows you to get a loan at low-interest rates. However, that’s not the only benefit you get. Both the loan applicant and co-borrower enjoy tax benefits on interest and principal repayments.
Each co-borrower can claim up to Rs. 2 lakh for interest repayment. On the other hand, each borrower is eligible for Rs. 1.5 lakh on principal amount repayment.
Remember, the property should have co-borrowers names to qualify for the tax benefits. In addition, the co-borrowers should complete their EMIs to be eligible for the tax home loan benefits.
Home Loan Tax Benefits for New Home Borrowers
If you’re a first-time home buyer, you qualify for an additional Rs. 15 lakh tax deduction on the interest you pay on your house loan.
However, there are some conditions you should meet:
- Your loan needs to have been approved between April 1st 2019 and March 31st 2022.
- The value of your property stamp duty shouldn’t go beyond Rs. 45 lakhs.
- You should not be the owner of any other residential property.
Eligibility Criteria to Apply for Home Loan
Ready to take a PNB home loan? Here’s a quick checklist of the eligibility requirements:
- Nationality: Indian
- Age: 21 years or above when applying; should not be older than 70 years of age during home loan maturity
- CIBIL: 611+
- Monthly Salary- Rs. 15000+
- Work Experience: 3+ Years
- Documents required: Home Loan application, Age proof, Education qualifications, Income proof, Residence proof, and Property documents
PNB housing feedback is also positive when it comes to tax benefits claims. So get a loan now to enjoy the benefits today!
Conclusion
Go through the above tax benefits and check the one you qualify for. PNB home loans come with great tax benefits that save you a lot of cash to spend on other living expenses.
Tax benefits claims are applicable for completed construction works. The property registration should also bear your name to qualify for tax benefits.
