Maximise Your Income Tax Savings with Home Loans Today

Claim tax benefits on your home loan and save big with deductions on principal, interest, and additional perks for first-time buyers.

Buying a home is one of the most significant milestones in life. But with skyrocketing property prices, financing this dream often requires a home loan. Here is the good news: apart from enabling homeownership, a home loan offers incredible tax benefits, making it a smart financial choice. Whether you are a first-time buyer or upgrading to your dream home, knowing the tax benefits can help you maximise your savings. 

Read to know how home loans can help you save on taxes, why they are a game-changer for your finances, and how Bajaj Housing Finance Home Loan can make this journey seamless.

Tax benefits on home loan

A home loan does not just provide you with the funds to purchase a property; it also comes packed with tax-saving opportunities. Let us break this down:

1. Deduction on interest paid (Section 24(b)): Under this section, you can claim up to Rs. 2 lakh annually on the interest you pay for your home loan, provided the property is self-occupied. If the property is rented out, there is no upper limit—only the net loss from house property is capped at Rs. 2 lakh for tax purposes.
2. Deduction on principal amount (Section 80C): The principal repayment qualifies for a deduction of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. This is part of the overall limit for savings and investments eligible under Section 80C.
3. Additional deduction under Section 80EE: First-time homebuyers can enjoy an additional deduction of up to Rs. 50,000 on interest paid, provided the loan amount does not exceed Rs. 35 lakh and the property value is below Rs. 50 lakh.
4. Section 80EEA (for affordable housing): For loans sanctioned between April 1, 2019, and March 31, 2024, buyers of affordable housing can claim an extra deduction of Rs. 1.5 lakh on interest paid.
5. Stamp duty and registration charges: Under Section 80C, stamp duty and registration charges paid while purchasing a house can also be claimed, within the Rs. 1.5 lakh limit.

How to maximise tax benefits on your home loan

Knowing the tax benefits is only half the story; understanding how to use them effectively can make a big difference. Here is how you can maximise your savings:

1. Opt for joint home loans: If you take a joint loan with a co-borrower (such as your spouse), both parties can claim tax benefits separately.
2. Plan your repayments strategically: Prepay your loan whenever possible to reduce the principal amount, thereby decreasing the interest burden and increasing your overall savings.
3. Claim all available deductions: Ensure you do not miss out on additional benefits like stamp duty and registration fee deductions. Keep all necessary documents, such as loan certificates and repayment schedules, handy for tax filing.
4. Ensure timely EMI payments: Tax benefits can only be claimed if you make regular EMI payments. Missing EMIs may not only affect your credit score but could also disqualify you from claiming deductions for that year.

Explore Bajaj Housing Finance Home Loan

Maximising your tax benefits with a home loan is just the beginning of your journey toward owning your dream home. Choosing the right lender can make a world of difference, and this is where Bajaj Housing Finance Home Loan steps in.

Here are a few benefits of opting for a Bajaj Housing Finance Home Loan:

1. Home loan amounts: Turn your dream of homeownership into reality with a high-value loan offering of up to Rs. 15 crore.
2. Low interest rates: Enjoy competitive  home loan interest rate starting at just 8.50%* p.a., which makes your EMIs affordable.
3. Quick approvals: You can get your loan approved within 48 hours* of application—experience faster approvals for a smoother process.
4. Long repayment tenure: Manage your repayment with ease by choosing a tenure of up to 32 years*, ensuring affordability and convenience.
5. Convenient application process: Skip the hassle of multiple branch visits with the simple application process, including doorstep document pick-up for your convenience.
6. Balance transfer with top-up loan: Lower your interest burden with the balance transfer facility and unlock eligibility for a top-up loan of Rs. 1 crore* or more.

Take the first step now—explore your options and apply for a Bajaj Housing Finance Home Loan today!

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