Union Budget Home Loan 2022 Incentives

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oi-Oneindia Staff


Updated: Tuesday, March 15, 2022, 12:49 PM [IST]

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Finance Minister Nirmala Sitaraman presented the Union Budget 2022-2023 on February 1, 2022. While presenting the budget in Lok Sabha, she said that this year’s budget will be the foundation for growth and growth. India’s economic expansion for the next 25 years. The government is making every effort to provide “housing for all” by 2022.

Union Budget Home Loan 2022 Incentives

Apart from several other sectors, various incentives are also announced for the housing sector. Among them, one of the biggest highlights is the award of Rs. 48,000 crores to the Pradhan Mantri Awas Yojana (PMAY). Other important announcements related to the housing sector include the acceleration of affordable housing approvals in urban areas, the establishment of a panel of experts and housing sector veterans who will make suggestions on policy issues. , capacity building and implementation, etc.

If you are a potential buyer, here are 5 important things you need to know about the home loan incentives under the Union Budget 2022-23.

1. From any lender – A home loan collected from a financial institution or from an employer, relative, friend or private lender qualifies for tax deductions. This is only applicable in case of interest and not for the principal amount. To take advantage of this incentive, you must present a certificate from the lender.

2. Request the total interest paid – You can book an apartment under construction for a cheaper rate than a fully furnished apartment. The income tax law allows you to claim the total interest paid for the mortgage during the pre-delivery period of the apartment. This can be done as a tax deduction in 5 equal installments. The payment period starts from the financial year in which the construction was completed or you acquired this new apartment. Generally, this indicates the date of possession. In the case of freestanding property, the maximum deduction you can claim in a year continues to be Rs. 2,000,000. If this is your first home, you are eligible for the interest deduction additional Rs. 1.5 million.

3. Joint purchase – If you buy a new apartment thanks to a mortgage, it will be more advantageous to acquire it jointly with your spouse. Before you qualify for a loan, you should have carefully considered the principal loan amount and the home loan interest rate. Likewise, you can consider taking advantage of this joint tax deduction. Each of you is entitled to a deduction of Rs. 2 lakh for interest paid by each of you. If your child is working, earning an income, and the bank approves it, you can split the loan in three ways. The three of you can avail up to Rs. 2 lakh as tax deduction individually. This is only applicable if it is a stand-alone property.

4. No second home tax – In the event that you purchase a second independent property, no additional liability will be added to your taxable income. Thus, no additional tax will be levied if you cannot find a suitable tenant or if you wish to keep it for yourself. You can keep it independent. This is only available for up to two houses. If you own a third independent house, it will be taxed on its “estimated value”. This means that the tax will be calculated for this house according to the expected market rent.

5. Rent or loss – Rs. 2 lakh is the maximum limit of total loss of home ownership which can be adjusted under any other income like salary or other sources. If you cannot keep the Rs. 2 lakh of interest under any of the heads of income, that excess interest can only be carried forward for 8 tax years. This compensation is only possible under the heading income – Income from home ownership. If you haven’t rented out your home, it becomes a sunk cost.

Besides the home loan interest rate and EMI to be paid, keep all these home loan incentives in mind before buying a new home using a home loan. Think twice, be wise!

Authors biography :
Vinod Gill is a writer specializing in writing content on insurance and finance topics. He is a digital marketing consultant, blogger and co-founder of Abestfashion.