What tax benefits are available on a home loan?
Under Section 88 of the Indian Income Tax Act, 1961, a rebate of 20% is allowed on the principal repayment of the loan up to Rs10,000. For self occupied houses, the income tax exemption limit for interest paid on housing loans is Rs 75,000. The Tax Certificate will be issued at the end of the financial year. Is it legal to sell the property on which the loan has been taken? Once the complete loan amount has been repaid, the property can be sold, although some banks also allow the transfer of loan to the buyer of the property.
