What are the eligibility criteria to claim tax deductions on home loans?

To claim home loan tax deductions either on principal or interest paid, a borrower must be owner of the residential property so financed. In the case of a joint home loan, all co-borrowers can claim the applicable deductions individually if they are co-owners of the purchased property and contribute to the repayment liability. The claim amount varies as per the proportionate repayment contributions made by the co-borrowers.

Can I claim tax benefit for an under-construction property?

Yes, a housing loan borrower can claim income tax benefit on home loan repayments even when the property so purchased is under construction. Such tax benefit is available only on interest payment and any other expenses incurred during the period and is claimable in 5 equal instalments post completion of construction. Nevertheless, for any such claims, construction of the property must complete within 5 years from the date of availing a home loan.

Can I claim tax benefit on two home loans?

Usually, home loan tax benefits are available only on a residential property declared as self-occupied. For two home loans availed to purchase separate residential properties, only one property would be considered as self-occupied.In that case, the second property is considered let-out and tax rules apply accordingly. Thus, annual interest deductions remain unlimited for the second home loan, whereby the property is deemed let-out. Also, its consideration as a let-out property results in notional rent consideration to be added to the assessee’s total income for tax liability calculation.

Can I claim separate income tax deductions if my spouse is employed?

To claim separate home loan income tax benefits for self and spouse, property co-ownership of the latter is a prerequisite. Further, employment of the spouse must also be considered in light of his/her qualification as a taxpayer as per the total annual income.Thus, if you and your spouse have availed a home loan jointly, assume liability for repayment separately, are co-owners of the property, and are taxable individuals, home loan tax deductions can be claimed by both separately.

Can self-employed individuals claim HRA benefit?

No, HRA benefits are not applicable to self-employed individuals. It is because HRA or House Rent Allowance is a salary component and is paid only to salaried individuals.Self-employed individuals can, however, claim other applicable tax deductions to save on their tax liabilities, such as tax saving on home loan principal and interest payment.

What is the maximum amount one can avail for deduction of interest?

The maximum amount of home loan interest tax benefits claimable depend on the use of the property so purchased. For a residential property purchased and self-occupied, annual interest tax deductions of up to Rs.2 lakh are claimable.In case of a residential property let out or deemed to be let-out, annual tax deductions towards interest paid come with no maximum limit.

CIDCO Lottery

CIDCO Lottery 2022

To maximise the benefits of Pradhan Mantri Awas Yojana, introduced by the Central Government, the Maharashtra State Government has set up City and Industrial Development Corporation (CIDCO).

Every year CIDCO chooses an area to develop and construct houses and then sell them at subsidised interest rates to eligible borrowers through a lottery system.

What is CIDCO Lottery?

Like any other lottery scheme, CIDCO lottery 2022 aims to construct sustainable, environment-friendly houses for commercial and residential purposes. In accordance with PMAY housing scheme, CIDCO will be constructing houses in specific places in Navi Mumbai, Kharghar, Panvel etc.

Moreover, the houses will be constructed within 2kms of essential services such as bus stations, railway networks, where winners can pay the booking amount as construction begins.

Benefits of CIDCO Lottery

As already mentioned, under the CIDCO housing scheme, an economically weaker section of the society will be provided with affordable housing. So, all the constructed houses will be allocated and distributed to the eligible participant of the 2022 draw. The ratio of house distribution is 60:40 for the EWS and LIG groups.

To avail of the benefits of this CIDCO housing scheme, individuals need to fulfil the eligibility requirements. Till 2020, this scheme aimed to provide 53, 000 units for the LIG group and 41, 000 for EWS category. The current year's number of home construction and location are not yet revealed publicly.

Eligibility Criteria for the CIDCO Lottery

Here are the eligibility requisites for the CIDCO lottery scheme:

To be eligible for the CIDCO home loan scheme, individuals must belong from either Economically Weaker Section (EWS) or Lower Income Group (LIG). Besides, the applicant needs to have a domicile certificate, which will show that the applicant has stayed in Maharashtra for 15 years.
Applicants belonging to EWS category should not earn more than Rs.25, 000 per month to apply for this scheme.
For availing house under LIG category of CIDCO lottery scheme, applicants must produce income proof that states that their monthly earning is between Rs.25, 000 - Rs.50, 000.

Documents Required for CIDCO Lottery

Besides fulfilling the eligibility parameters, applicants need to submit the following documents for a hassle-free application –

Aadhaar card
PAN card
Voter’s ID
Income proof certificate
Domicile certificate
Bank details

How to Register/Apply for CIDCO Lottery?

If an applicant is eligible, he/she needs to fill in the online CIDCO application form to register for lottery scheme. One can apply for this lottery scheme by following the steps mentioned below:

Step 1: At first, applicants need to visit the official website of CIDCO lottery.

Step 2: Register your name by selecting on the ‘Register for lottery’ option.

Step 3:After successful registration, users will be redirected to the CIDCO application form, where one needs to provide authentic details such as address, Aadhaar and PAN card, bank account details etc. and click on ‘Confirm’ after entering the captcha code.

Step 4: Enter the OTP and upload necessary documents.

Step 5: After reviewing the form, select ‘Submit’ option.

Step 6: In the end, users will be redirected to the payment gateway, where one can choose their preferred mode of payment.

Note: For registration, EWS category and LIG category, individuals are required to pay a registration fee of Rs.5, 000 and Rs.25, 000 respectively. After completing the registration process, interest borrowers can apply for it. Once receiving the confirmation, individuals can approach leading financial institutions like Bajaj Housing Finance Limited for required financial assistance along with exclusive loan deals and services.

How to Check the CIDCO Application Status?

Besides knowing what is CIDCO, individuals need to know about how to check the application status of this scheme –

Step 1:Visit the official portal of CIDCO

Step 2: Now, select on the link showing ‘Click here for estate online services.’

Step 3:Select ‘Check status/ Upload documents’ from the available option.

Step 4:Now input your application no. along with registered mobile no.

Step 5:Select ‘Check request status.’

Step 6:After following this step, necessary information will be displayed on the screen.

How to Check CIDCO Lottery Results?

To check the lottery result of this scheme, follow the procedure mentioned below-

Step 1: Firstly, visit the official portal of CIDCO lottery and search for Accepted Applicants. Applicants need to input their details to check the results.

Step 2: To view a compact result, applicants need to search based on their scheme and category.

Step 3: Input necessary details and check results.

If you fail to avail a house under this scheme, applicants will receive a refund and can try their luck next year.

Now that individuals know the necessary information about this CIDCO lottery scheme 2022, one needs to meet eligibility requirements before applying for the scheme to receive an allotment.

Quick Links:

Housing Schemes in India

Pradhan Mantri Awas Yojana

Bhulekh UP

Cash Reserve Ratio