Did you buy a house?

Well if your answer is yes then you can possibly avail huge deduction on your taxable income.

Income Tax Act allows you to avail 2 kinds of deductions when you invest in buying a house.

1. Interest paid on the loan amount

• Time period when it can be availed: For 5 years, starting from the year of completion
• Maximum Amount Allowed = Rs 1,50,000.
• Where does it go in Income Tax Head: Under Income from House Property.

In case you paid interest during construction phase, you can take its benefit when the house is complete.

2. Principal Amount Paid

• Time period when it can be availed: For 5 years, starting from the year of completion
• Maximum Amount Allowed = Rs 1,00,000
• Where does it go in Income Tax Head: Under Sec 80C Deductions.

In total, you can avail the whopping amount of Rs 2,50,000.