A tax rebate claim is a claim to refund taxes when the tax liability is less than the taxes paid. Taxpayers can often get a tax rebate claim on their income tax if the tax they owe is less than the sum of the total amount of the withholding taxes and estimated taxes that they paid, plus there fundable tax credits that they claim.
Claim can be made for principal amount of housing loan together with other expenses like registration fee; stamp duty etc from the financial year in which events like purchase, reconstruction, completion etc occurs.
Government provides tax rebate claim scope for some business and individuals who invest on which deduction is available under section 80C of the income tax Act, 1961. You can avail tax rebate claim on home loan principal amount and interest paid.
You can avail for a tax rebate claim for interest paid along with your monthly EMI. You can claim your interest deduction up to Rs 1, 50,000/- .Tax rebate claims can be enjoyed if you could not occupy the house due to your business or employment and your house is not let out during the year.
If you are away from your city or property due to your business or employment and your house is not let out to anybody, you are eligible for a tax rebate claim. You can claim deduction u/s 24 for interest on capital borrowed. Principal deduction qualifies u/s80-C. If your employer is providing House rent Allowance (HRA) there would be no bar u/s 10(13A).
Tax rebate claim is available to borrowers who are continuing or making prompt payment. If you fail to make EMI payment in time, you cannot enjoy benefit. Claim can be made from only person who borrows the loan and co-borrowers can claim to extent they repay.
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