First-time homebuyer? Here is how you can avail tax benefit upto Rs 5 lakh

If you are buying a home for the first time, you are entitled to get income tax benefits on it under three sections — Section 80C, Section 24 and Section 80EEA of the Income Tax Act. Here is all you need to know:

Many first-time homebuyers often remain confused about the income tax benefits that they can get on a home loan after purchasing their first residential property. If you are buying a home for the first time, you are entitled to get income tax benefits under three sections — Section 80C, Section 24 and Section 80EEA of the Income Tax Act. These sections of the Income Tax Act let you avail home loan benefit of Rs 5 lakh annually. Let's understand with this detailed chart of Income Tax sections: Now, let’s consider a scenario that you have purchased a property in April 2021, the property value is Rs 50 lakh and you have taken 80 per cent as loan amount i.e. Rs 40 lakh on it from a financial institution (bank or NBFC) at an interest rate of 7 per cent for 20 years.