When you’re mortgaging your property, you get some eligibility to get some income tax benefits. Read this article to know about how to get tax benefits on loans against property. Loan against property is a good option and is very simple and clear. This kind of loan is sanctioned after pledging your commercial or residential properties on collateral. Loan against property is a secured loan option and is a long- term commitment. It provides funds for multiple needs as well. One can easily get the loan against property from any good bank by mortgaging their property to get the loan amount approved (depending on the current value of your property). The value generally falls around 70%. The other major factor that needs to be considered is that both salaried and self employed can claim the tax benefits on the loan against property. Here are some of the points which will make you more clear : Also checkout loan against property reviews.
Tax Benefit Under 24(B): under this section you are eligible to avail the loan against property amount only if you are using it to fund your new residential house. Salaried people can get the benefit of this. And the maximum amount you can avail is upto2 Lakhs. If the funds borrowed are used in some other things like marriages, education etc, then it cannot be claimed.
Tax Benefit Under Section 37(1): under this section tax deductions are applied only if it is used for business purposes. Some features of loan against property that one can enjoy apparat from the tax benefits:
Loan Amount: One can get the loan amount upto5 crores against the property but it depends upon the market value of that property. LOAN INTERESTS RATES: The loan against property is not only a secured loan but the interest rates are also low and hence lowers the total EMI and also the financial burden over someone.
This is a long term loan and goes up to20 years which also results in less financial burden over someone.