Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > 5 Things You Should Know About Home Loan from Union Budget 2022

Loan for Home

5 Things You Should Know About Home Loan from Union Budget 2022

5 Things You Should Know About Home Loan from Union Budget 2022

Each year, with the announcement of the union budget, both home buyers and the realty sector look forward to beneficial reforms and rebates. While the sector has witnessed a steady growth in demand post-pandemic, the budget this year focused on giving a further boost to the potential home buyers. So, with the union budget 2022, real estate industryand prospective buyers were graced with a range of measures.

From faster approvals for affordable housing under the PMAY scheme to tax benefits on home loan, union budget 2022brought many benefits. Listed below are five of them.

Boost to PMAY scheme

The union budget for 2022 primarily focused on affordable housing. To achieve the target of housing for all, the finance minister has allocated a further fund of Rs. 48,000 crores. The allocated funds will ensure the completion of around 80 lakh houses for beneficiaries this year.

Furthermore, the government will identify an additional 60,000 eligible beneficiaries for houses in rural and urban areas. This will also ensure a boost in housing demand from potential buyers. 

Tax deduction on joint property

If you are planning to buy a house this year, it will be beneficial to do so jointly with a family member or your spouse. Because with a joint home loan, you both will be eligible for a deduction of Rs. 2 lakhs on the interest payment. Moreover, if you are a first-time homeowner, you are also eligible for an additional tax deduction of Rs.1.5 lakhs on the interest payment. This could lead to substantial savings for you.

Additional Read – Your Guide to Finding the Best Home Loan Scheme in 2022

Tax benefits on loan

If you take a loan from a friend, private lender, or employer to finance your purchase, you are still entitled to a tax deduction on the interest amount. To avail the incentives, you’ll need to present a certificate from the lender. However, remember that this tax benefit is applicable only on interest amount and not principal.

Extension in additional tax benefits

Under section 24 of the IT Act, you are eligible for income tax deductions on home loan interest rates payable up to Rs. 2 lakhs. Now, the government has extended an additional tax deduction of Rs. 1.5 lakhs (under section 80 EEA) on interest paid for one more year. You can now avail of a total tax benefit of up to Rs. 3.5 lakhs till March 31st, 2022.

Savings on under-construction properties

If you purchase a currently under-construction apartment, you can save a lot with a range of tax incentives. Under the IT law, you can claim the total tax benefits on interest paid during the construction period in five equal instalments. You can avail of this deduction starting from the year you received possession of the apartment. You’re allowed a maximum deduction of up to Rs. 2 lakhs on a self-occupied property.

Additional Read – Reasons Why Budget 2022 will be Focusing More on Affordable Housing

To conclude

With such great benefits on housing loans, purchasing your house is now much more beneficial. Get a step closer to your dream home with affordable loan options from Tata Capital! Avail of a quick loan at flexible repayment terms and attractive interest rates.

Plan your loan using our home loan EMI calculator and get started with us today!

Apply For Home Loan

Say Hello to Your New Home with Our Easy Home Loans!

Apply now
Popular Searches
anyror modt charges 712 utara online gujarat pre emi calculator earnest money deposit Goa Land Record earnest money khasra number meebhoomi Assam Land Record
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.