What are the maximum tax savings possibilities for house loan?
-
In December last year, we took a loan (75 lakhs with interest of 8.5% for 30 years) to buy a house. I and my wife both are government employees. My wife, mother and I are the names on the loan, but only I am paying the monthly installment of Rs. 69,300. A new loan has been taken by my mother but she will be retiring soon.
So tell me, what is the highest tax savings on house loan that we get? Should I opt for different banks to increase our savings?
And if I am taking any health insurance, is my spouse eligible to receive tax benefits? -
Hi
In terms of your situation, there are number of factors you can consider for tax saving and financial planning. Both you and your wife, as co-owners can claim the tax deductions individually and doubling the tax benefit.
- Under section 24B you can claim the deduction up to Rs. 2 lakh on interest paid and Under section 80C you can claim Rs. 1.5 lakh on principal.
- Choosing different banks won’t result in direct rise in your tax savings. As it provides additional advantages and better interest rates.
- Under Section 80D, your wife is eligible to deduct the premiums paid for their health insurance coverage from her taxes.
In the end, just remember to take advantage of the deductions available under sections 80C and 24B to maximize the tax benefits of your home loan.