Interest on Housing Loan : Tax Benefits & Deductions
Buying a house is a dream for each one of us. It is one of the costliest asset in our portfolio too. Hence most of us cannot afford to buy it without opting for a Housing Loan. Even governments encourage taxpayers to buy a house by providing multiple tax benefits. In this article we will study some of the important tax benefits of a home loan that you should not forget to claim while filing your ITR. CONCENT OF SOP-LOP : Before we deep dive into the intricacies, we need to understand two concepts regarding House Property taxation viz. Self-Occupied Property & Let-Out Property SOP (Self-Occupied Property) means a property used for owner’s own residential purpose or a property that cannot be occupied owing to employment/business at other place and the owner has to reside at that other place in a rented premise. LOP (Let-Out Property) simply means a rented property. An assessee can claim maximum two house properties as his SOP for any financial year. TAX BENEFIT / DEDUCTION : A maxim