New income tax rules from 1st April 2022 for home loan borrowers — explained

New income tax rules: Following the start of the new financial year, a number of changes to the income tax rules have been implemented as of April 1, 2022. The introduction of a standard tax of 30 percent on income from investments in virtual assets, additions to LTCG are some of the major changes announced by Union Finance Minister Nirmala Sitharaman in the 2022 budget. In this budget, she did not extend the extra income tax benefit provided to home borrowers under Section 80EEA. As of April 1, 2022, first-time home buyers will not be able to claim income tax benefits up to 1.50 lakh housing loan interest payment according to section 80EEA in the Income Tax Act.

Talks about the new income tax rules from April 1, 2022; Mumbai-based tax and investment expert Balwant Jain said: “Under FY23, a taxpayer will not be able to claim benefits under Section 80EEA as this special benefit announced in Union Budget 2019 has expired on March 31, 2022. So, from Now, first time home buyers will not be able to claim income tax benefits of up to 1.50 lakh mortgages interest payment in a single financial year under section 80EEA. “

Talks about income tax rules for home borrowers during FY 2023; Sujit Bangar, founder of Taxbuddy.com said: “An extra deduction was made on the mortgage rate up to 1.5 lakh on housing properties valued less than 45 Lakh for first time home buyers. FM has not extended this system after 31 March 2022. Therefore, this has a further deduction 1.5 lakh will not be available to taxpayers as of April 1, 2022. Other existing deductions due to mortgage interest rates up to 2 Lakh would continue under Section 24 of the Income Tax Act. “

However, Balwant Jain said that the first-time home buyers who have received a sanction letter for home loans before April 1, 2022 and their property value is less than 45 lakh, may still claim income tax benefits under section 80EEA.

“A borrower of a home loan can claim income tax benefits according to § 80 EEA if he has a home loan that is sanctioned between 1 April 2019 and 31 March 2022. So if a new borrower has received a sanction letter for home loan no later than 31 March 2022 and receives payment in current tax, he or she will be entitled to income tax benefit of up to 1.50 lakh mortgage interest paid during a financial year under Section 80EEA. “Balwant Jain also said that the benefit under Section 80EEA will be available for the entire term of the mortgage.

Subscribe to Mint Newsletter

* Please enter a valid email address

* Thank you for subscribing to our newsletter.

Download the app to get 14 days of unlimited access to Mint Premium for free!

.

Leave a Comment