This budget, there is a good news for people who are planning to buy their first home this year. You can avail an additional Income tax benefit on home loan interest payments, stated as follows
1. New loans up to Rs 25 lakh for the people buying their first homes will be eligible for tax deduction of Rs 2.5 lakh for interest payments.
2. A person taking a loan for his first home purchase up to Rs 25 lakh between 1 April 2013 and 31 March 2014 will be entitled to an additional deduction of interest of up to Rs 1 lakh.(Current deduction is 1.5 lakh)
3. If the interest component is less than the deduction limit, you can claim the balance in next financial year.
