What are the tax benefits of taking an SBBJ Housing Loan?
A. Under the Indian Income Tax Act of 1961, resident Indians are eligible for certain tax benefits on principal and interest components of a loan. Under Section 24(1), interest repayment of Rs.1,50,000/- per annum qualifies for tax saving under the new Finance Act, provided the property is acquired or constructed with capital borrowed after April 1, 1999 and the acquisition/construction is completed before April 1, 2003 , and the property is self occupied. An added benefit under Section 80 C on repayment of principal amount subject to the overall ceiling of Rs.1,00,000/- is also available on the same loan.
