A query on Home Loans?
Ravindran. M asked:
I live in India. I wish to take a home loan. I heard that I would not get tax benefits if I buy only a plot. They say that I can get tax benefits only if I buy a house or if I take a loan for constructing a house. Is this true? Is there no tax benefits if you buy a empty plot.
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I live in India. I wish to take a home loan. I heard that I would not get tax benefits if I buy only a plot. They say that I can get tax benefits only if I buy a house or if I take a loan for constructing a house. Is this true? Is there no tax benefits if you buy a empty plot.
October 30th, 2009 at 3:53 am
Tax benefits are available if you buy a house or flat or construct a house with loan amount.
If you take a loan from the home loan providing institutions, then you can claim tax benefits u/s 80C and u/s 24 (b).
If you take loans from others (other than home loan providing institutions), then you can only claim interest benefit u/s 24 (b) and you cannot claim tax benefit u/s 80c.
The Max. tax benefit u/s 80C is restricted to Rs.1 lakh (including other 80c investments like LIC, children education fee PPF etc.)
Sec.24(b) interest on borrowed loan amounts is limited to Rs.1.5 lakhs if the house is self occupied. If the house is given on rent, then you can claim full (actual) amount of interest paid.
Sec.80C is for repayment of principle amount. This is available only if you take a loan from a Bank or some home loan institutions.
No tax benefit for emply plots.
November 2nd, 2009 at 1:50 am
Why are you under the impression that you will get a housing loan for buing a vacant plot?
You can get a loan for buing a plot, but that is not housing loan.
There are no tax benefits if you buy a vacant plot.