Tax on Home Loan: Homebuyer will be shocked from April 1, will not get the benefit of tax exemption on interest payment of Rs 3.50 lakh on home loan

Tax Benefit On Home Loan: By the way, first time homebuyers who are availing the benefit of tax exemption on payment of interest of 3.50 lakh on home loan annually. They are going to get a setback from April 1, 2022. From April 1, 2022, the central government is going to stop giving the benefit of tax exemption under section 80EEA to first-time home buyers.

No tax exemption under 80EEA
In the budget for 2019-20, the central government had announced an additional ₹ 1.50 lakh income tax benefit on home loans for home buyers up to Rs 45 lakh. Later this facility was extended in Budget 2020 and 2021. But in the budget presented by Finance Minister Nirmala Sitharaman on February 1, 2022, this facility has not been extended from the new financial year 2022-23 starting from April 1. Such homebuyers may have to pay more tax from the next financial year 2022-23.

Scheme ending on 31st March
In fact, between April 1, 2019 and March 31, 2022, the central government had announced to give more tax exemption to those buying home loans for the first time. According to this scheme, homebuyers who buy a house with a stamp value of Rs 45 lakh during this period will be taxed on payment of additional home loan interest of Rs 1.5 lakh under 80EEA in addition to payment of home loan interest of up to Rs 2 lakh under section 24. You will get the benefit of discount. That is, during this period, home buyers have been getting the benefit of tax exemption on payment of home loan interest up to Rs 3.50 lakh. Whose deadline is ending on 31 March 2022.

Homebuyer’s tax liability will increase
Let us tell you that on February 1, 2021, the Finance Minister, while presenting the budget, extended the period of taking advantage of this scheme till March 31, 2022. While its deadline was ending on 31 March 2021. But while presenting the budget this year, the Finance Minister has not extended this facility being given to homebuyers. That is, the benefit of tax exemption that taxpayers are getting on payment of interest up to Rs 3.50 lakh on home loan will not be available from the next financial year. This means that such homebuyers who were taking benefit of tax exemption under this scheme on income of Rs 1.50 lakh will have to pay tax on this amount from the next financial year.

It is affordable and benefits first time home buyers. According to an estimate, taxpayers who do not extend this scheme by the Finance Minister may have to bear the tax burden of more than Rs 20,000 annually.