You most certainly already know that there are tax advantages if you have taken a house loan or intend to. But realistically, how much can you save? This is where a mortgage tax calculator can enable fast and accurate figure-out. Let’s dissect the functionality of this tool and discuss how you might use it to better plan.
Define a Mortgage Tax Calculator
A mortgage tax calculator is a basic web tool designed to assist you in:
- Calculating your tax savings associated with your house loan.
- Seeing the principal and interest you could be entitled to deductions from.
- Getting ahead of your annual taxes.
- Calculating the real amount of money tax benefits are saving for you.
New buyers as well as current house loan borrowers will find it helpful.
Indian Home Loan Tax Savings
Repayment of a housing loan results in tax benefits under the Income Tax Act. The primary divisions are:
- Section 80C
- On the main EMI, claim up to ₹1.5 lakh annually.
- Includes just the year-paid stamp duty and registration fees.
- Relevant for let-out and occupied houses.
- On the main EMI, claim up to ₹1.5 lakh annually.
- Section 24(b)
- Claims up to ₹2 lakh annually on home loan interest paid.
- Solely for occupied property.
- No upper limit for rented properties; conditions apply.
- Claims up to ₹2 lakh annually on home loan interest paid.
- Section 80EE / 80EEA (Extra Deduction)
- Up to ₹50,000 or ₹1.5 lakh additional (for first-time house purchasers).
- Drawing on loan amount and property value.
- Up to ₹50,000 or ₹1.5 lakh additional (for first-time house purchasers).
What Shows on a Mortgage Tax Calculator?
Just enter some simple information like:
- Total house loan balance.
- EMI every month.
- Loan period.
- Interest rate.
- Start date for the loan.
The calculator will show your year’s worth of principal and interest payments.
- Under 80C and 24(b), what tax claims are possible?
- Your whole financial year tax savings.
Who Should Use a Mortgage Tax Calculator?
- Salaried people having home loans.
- Self-employed workers with loans for their homes.
- First-time house buyers intending to borrow.
- Individuals weighing loan choices for maximum tax advantages.
Advantages of Applying It
- Results right away; no hand calculations.
- Supports tax planning prior to March.
- Shows whether your 80C and 24(b) limits are being fully used.
- Applied for a second home loan or when submitting ITR is useful.
Last Consideration
Every Indian home loan borrower should have a mortgage tax calculator on hand. It guides your financial management in addition to indicating the amount of tax you are saving. Avoid waiting until the last minute; check your savings now and make wise plans. Your house loan can help you with taxes in addition to providing a house!