Tax Benefits on Loans

Tax benefits significantly reduce your overall burden. Section 80E allows interest deductions on education loans for higher studies of yourself, your spouse, or children, spanning up to 8 years. Home loans under Section 80C offer a ₹1.5 Lakh deduction on the principal amount. Section 24(b) allows up to ₹2 Lakhs deduction on the interest for self-occupied homes. First-time home buyers benefit from Sections 80EE and 80EEA. Other loans, like business, electric vehicle, and loan against property, offer specific deductions. Keeping meticulous records and seeking expert advice due to potential law changes are essential practices.

Key Takeaways

Education Loan: Deduct interest under Section 80E for up to 8 years, no limit, if borrowed from approved financial institution for higher education of self, spouse, or children

Home Loan: Get up to ₹1.5 Lakh deduction on principal under Section 80C, and up to ₹2 Lakhs on interest for self-occupied properties under Section 24(b)

First-time home buyer: Explore additional benefits under Sections 80EE and 80EEA for extra deductions on home loan interest payments

Business Loan: Claim interest payment deduction as a business expense to reduce taxable income

Loan Against Property: Deduct interest payments under Section 24(b), but no deductions on principal repayments

Electric Vehicle Loan: Eligible for up to ₹1.5 Lakh deduction on interest under Section 80EEB, subject to conditions and documentation

What to Watch Next

New Season

All About Two Wheeler Loans

New Episode

Two Wheeler Loan EMI Calculator Crunch the Numbers

New Episode

Things You Need to Know about Two wheeler Loans

New Episode

Unravelling TDS Rules Section 194C Explained

New Episode

Deciphering TDS Deduction on Fixed Deposits

New Episode

ITR for Self employed Individuals Explained

New Episode

TDS on Salary Explained What Every Employee Should Know

New Episode

TDS 101 What You Should Know

New Episode

Niche Investments for Swift Tax Gains Beyond the Conventional Choices

New Episode

Health is Wealth: Last-Minute Tax Benefits on Medical Expenses

New Episode

Last Minute Charitable Contributions Give Back and Save on Taxes

New Episode

Real Estate Rescues: Last-Minute Tax Benefits in Property Investments

New Episode

Calculating the Optimal Investment Amount for Tax Savings

New Episode

Common Tax-Saving Mistakes To Avoid Before The Financial Year Ends

New Episode

Last-Minute Tax-Saving Investments: Where to Put Your Money

All

Yes, tax benefits under Section 80E are applicable, but the loan must be borrowed from an approved financial institution to qualify for the deduction.

There is no defined maximum limit. However, you can claim the deduction for a maximum of 8 years or until the loan is repaid, whichever is earlier.

You can get a deduction of up to ₹1.5 Lakh on the principal amount, but it's applicable only for self-occupied and let-out properties.

Yes, under Sections 80EE and 80EEA, first-time home buyers can claim additional deductions on interest payments, providing extra financial relief.

Yes, you can claim tax deduction on the interest payment for a business loan by presenting it as a business expense. This could help reduce your business' taxable income.

Bajaj Finserv Direct Limited ("Bajaj Markets") offers to its customers, various financial products and services through its digital platform as a registered Corporate Agent with IRDAI, registered Investment Adviser with SEBI, registered Third-Party App Provider (UPI payments), and as DSA or Digital lending platform of its Partners. Further, Bajaj Markets also offers a marketplace e-commerce platform to facilitate transactions between customers and sellers on-boarded on the platform. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522 Corporate Agency (Composite) Registration no.CA0551 (valid till 10-Apr-2027) Investment Adviser, SEBI registration: INA000016083 (Validity - Aug 11, 2021 - Perpetual)

Tax Benefits on Loans

Key Takeaways

What to Watch Next

Bites