Understanding the potential tax deductions on different types of loans might help you manage your finances better. In this video, we’ll explain the tax deductions offered by loans such as education loans, home loans, electric vehicle loans, etc.
We’ll also cover how, under Section 80E of the Income Tax Act, you could claim a deduction on education loan interest without any maximum limit. For home loans, Section 80C might allow a deduction of up to ₹1.5 Lakhs on the principal repayment. Additionally, Section 24(b) could provide a deduction of up to ₹2 Lakhs on the interest payments for self-occupied properties. First-time homebuyers could also benefit from Sections 80EE and 80EEA. You could claim an additional deduction of up to ₹1.5 Lakhs on the interest paid under Section 80EEA.
Additionally, we’ll discuss how business loans offer deductions on interest payments when presented as business expenses. Furthermore, loans against property may allow for tax deductions on interest payments under Section 24(b). For electric vehicle loans, Section 80EEB might allow a deduction of up to ₹1.5 Lakhs on the interest paid.
It’s essential that you maintain proper documentation and meet the required criteria from the IT Department. For specific advice, you could also consult a tax advisor.
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