Tax benefits on a home loan
First-time homebuyers who take a loan to buy their houses can get several tax benefits. Not only are there deductions up to Rs. 1,50,000 and 2,00,000 on annual principal and interest repayments respectively, but you can also get deductions under Section 80C for stamp duty and registration costs. You can claim deductions up to a maximum of Rs.2 lakh and Rs.1,50,000 on your interest and principal repayments annually along with deductions on payments made for registration and stamp duty under Section 80C as well. You can also claim deductions on interest paid in the pre-construction phase and also an added deduction of Rs.50,000 under Section 80EE if your home is valued at less than Rs.35 lakh.