In case of a home loan jointly, every borrower can enjoy tax benefits on joint home loan from his/her taxable income individually. One can claim a maximum of Rs. 2 Lakh on the interest paid and up to Rs. 1.5 Lakh on the principal amount. Any family member, friend or even the spouse can be a co-borrower of a Joint Home Loan from Bajaj Finserv. The only condition is that every applicant of the housing loan must be a co-owner of that residential property.

The process to claim tax benefits on a home loan is easy and simple.

1. Make sure the residential property is in your name. In case of a joint home loan, ensure to be the house’s co-owner.
2. Calculate the total amount you can claim as a tax deduction.
3. Hand over your employer the home loan interest certificate so that he can adjust the TDS.
4. On failing to follow this step, you need to file your IT returns.

Self-employed borrowers need not submit these documents. They must keep these handy to provide if a query arises in the future.

The maximum tax deductible for a home loan is listed below under specified sections of the Income Tax Act 1961.

• Up to Rs. 2 lakh u/s 24 for self-occupied house; no limit for non-self-occupied house.
• Up to Rs. 1.5 lakh u/s 80C.
• Up to Rs. 1.5 lakh u/s 80EEA for first-time home buyers.

Premiums paid for a home loan protection insurance plan are tax deductible under section 80C of the Income Tax Act 1961 only if the borrower makes repayment. Under specific circumstances, where the lender finances such insurance plan and the borrower repays via loan EMIs, deductions are not allowed.

A home loan top up is eligible for tax deduction u/s 24(b) and 80C only if it is used for –

• Acquisition/construction of a residential property.
• Renovation or repair of such property.

Such a claim should also be backed up with valid receipts and documents.

If you take a second home loan to purchase another property, tax benefits are applicable on the payable interests. Here, you can claim the entire interest amount paid as no cap is applied here. Currently, individuals can claim only one property as self-occupied and make tax payments on the other based on notional rent.

In the February 2019’s Interim Budget, a proposal has been put forward stating that an individual can claim a second home as self-occupied property. This aims to help borrowers save more in the form of taxes.

Home loan repayment is eligible for tax deductions under the Income Tax Act 1961. Home loan interest paid up to Rs. 2 lakh per year is tax deductible u/s 24. Section 80C allows deduction against principal repayment of up to Rs. 1.5 lakh every year. Additional deductions are available u/s 80EE and 80EEA.

A person who has purchased a new house for self-occupation or to rent out can claim tax exemption on home loans u/s 24, 80C and 80EEA of the Income Tax Act 1961. You can also claim tax benefits if you are a co-owner of the house or a co-borrower.

Yes, you can claim home loan tax benefits for a property under construction u/s 80C. The following rules apply for such deduction.

• If the construction is completed within 5 years, a deduction of Rs. 2 lakh is applicable.
• For constructions not completed within 5 years, only up to Rs. 30,000 is deductible.

Tax benefits are available to consumers of house loans for the interest component as well as the principal component of the housing loans. The current budget has left the upper limit of the interest payment deduction at Rs. 150,000 per annum. Section 88 also allows tax benefits on principal repayments.

Stamp Duty is a tax collected by the Government on every document by which any right, title, interest or liability is created, transferred, extended, extinguished or recorded.

Since the values of transactions in the real estate market tend to be quite high, the amount of stamp duty is also a large amount. The only exception to Stamp Duty is when the property is transferred through “Will” of a deceased person. All other transfer documents like an agreement to sell, development agreement, Conveyance Deed, Gift Deed, Mortgage Deed, Exchange Deed, Deed of Partition, Power of Attorneys, lease deeds, etc. have to be property stamped before registration.

Market Value of Flat = Carpet Area x 20% x Ready Reckoner Value of that Area Stamp Duty = 5% on Market Value or Agreement Value (whichever is higher)

Registration Fee for Sale Agreement is 1% of the market value or agreement value (whichever is higher) subject to Maximum of Rs. 30,000 (from 1- 4 – 2003)

GST does not apply to sale of completed properties (where completion certificate has been issued) or to the resale of old properties. Following GST rates are applicable on under construction properties.

GST Council Definition of Affordable Housing Segment The GST Council has announced the applicable criteria for eligibility of a residential property in the affordable housing segment as part of the 33rd GST Council Meeting press release. The following are the key affordable housing segment qualifying criteria for a residential property in India:

• Total carpet area of residential property cannot exceed 60 square meters in metropolitan areas.
• Total carpet area of residential property cannot exceed 90 square meters in non-metropolitan cities and towns.
• Total value of property cannot exceed Rs. 45 lakh in either metropolitan or non-metropolitan areas.

For purposes of this definition, metropolitan areas in India include Delhi NCR (limited to Delhi, Noida, Gurgaon, Faridabad, Ghaziabad and Greater Noida), Kolkata, Chennai, Hyderabad, Bengaluru and Mumbai (entire Mumbai Metropolitan 

An Indian citizen living abroad for education, work, or business for an extended period is an NRI. Foreign citizens of Indian origin are also considered NRIs for certain purposes.

There are no restrictions on property payment. Regular banking channels apply.

Methods include FCNR accounts, remittance from abroad, NRO accounts, and NRE accounts.

Foreign citizens of Indian origin, both in India and abroad, have RBI’s general permission to buy property in India for genuine residential use. No separate RBI permission is needed.

FEMA states that repatriation amount shouldn’t exceed the foreign exchange used to acquire the property, regardless of the sale proceeds.

No, NRIs can invest in Indian real estate without quantity or investment limits.

You can send money from abroad through regular banks. Also, there are NRO accounts in India (dollar deposits for residents or non-residents) and NRE accounts for external rupee deposits.

According to FEMA rules, before buying, NRIs must submit form IPI 7 to RBI’s central office. Include title deed or certified purchase agreement within 90 days, along with bank certificate showing payment details.

The Reserve Bank has granted general permission to certain financial institutions, like HDFC, LIC Housing Finance Ltd., to grant housing loans to non-resident Indian nationals for acquisition of houses/flats subject to certain conditions.