I have Housing loan running with HDFC (Property in Bangalore) , Now i am planning to take some top up loan (New Loan Account will be created).
I am planning to use this top up loan amount to construct home in Native (I heard if we use the Top up loan for Construction or Renovation We can claim tax benefits)
So may i know whether i can add this top up loan for tax exemption and If yes what documents/Proofs needed.
3 Answers
Hi,
Yes, you can seek tax rebate if funds are used for home improvements or further purchase/construction of home.
You need to use loan statement to claim tax benefits. Do note that, one can not claim tax deduction when the property is under-construction.
Related articles :
https://www.relakhs.com/top-up-loans-vs-personal-loans/
https://www.relakhs.com/under-construction-house-how-to-claim-tax-deduction-on-home-loan-interest-payments/
https://www.relakhs.com/understanding-tax-implications-of-income-from-house-property/
Thanks Sreekanth
So once the construction is over (may be Feb 2019) .
from Next year (2019-2020) i can show the top up loan for tax exemption correct ?
Please login or Register to submit your answer