Is the new income tax slab beneficial for home loan EMI payers?

Ankit Agarwal, managing director, Devika Group, said the old tax regime offered more deductions for payment of interest and principal to home buyers. home loans Compared to the new tax system.

New tax regime will not allow homebuyers to claim deduction

However, when it comes to taxation, the amendments to the new tax regime will not allow home buyers to claim deductions that they could avail under the old tax regime, said Anurag Goyal, director, Goyal Ganga Group.

Income tax The 1961 Act provides for various provisions for tax exemption on home loans, such as tax deduction on principal repayment of home loans up to Rs 1.5 lakh under section 80C, tax deduction on interest payments for home loans up to Rs 2 under section 24 lakh, and deduction under section 80EEA in case of affordable housing if you are a first time property buyer, and section 80EEA also allows taxpayers to claim an additional deduction of up to Rs 1.5 lakh annually.

New Tax Regime Vs Old Tax Regime: What Should Home Buyers Choose?

Suren Goyal, Partner, RPS Group, said that all these deductions were covered under the old tax regime, thus the new tax regime will not benefit home buyers in terms of reducing the tax burden on their home loans.

According to Siddhartha Maurya, Resource Expert, Fund Management, those who opt for the new tax regime will lose out on the possibility of deductions under sections 80C, 24(b), and 80EEA, in view of the lower tax rate and a streamlined tax structure. Have to wash Like new tax slab five, tax exemption limit 3 lakh, and tax exemption limit 7 lakhs.

FM Sitharaman provided significant relief to all taxpayers in the new regime, but home loan borrowers should be aware that if they are in a higher tax bracket, they can effectively save tax by opting for the old tax regime.