Learn how a Loan Against Property (LAP) can offer tax benefits under the Income Tax Act. Sections 24(b), 37(1), and 80C allow deductions on interest and principal repayments, impacting tax liabilities. Transferring your LAP to a new lender can enhance tax savings. Utilise LAP wisely for financial and tax advantages.
Section 24(b) allows tax deductions on interest paid for LAP, limited to ₹2 Lakhs annually
Section 37(1) offers deductions on LAP interest for business expenses
Section 80C permits deductions on LAP principal repayment, up to ₹1.5 Lakhs yearly
Tax benefits depend on LAP fund usage, like property renovation or business expenses
Transferring LAP to a new lender can impact tax savings under Section 24(b)
Total deductions across lenders for LAP interest cannot exceed ₹2 Lakhs annually