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.

MHADA Lottery

About MHADA Lottery 2022

MHADA, or the Maharashtra Housing and Area Development Authority introduced this affordable housing scheme for residents of Maharashtra willing to purchase a house at a comparatively lower cost. This scheme aims to include prospective homebuyers from every income group of the society.

What is MHADA Lottery?

The MHADA lottery system ensures the allocation and distribution of homes to eligible applicants. Under this plan, there are properties available at various price points for different income-defined categories of individuals. Interested homebuyers can complete the registration process and apply for this lottery. Once they receive confirmation, they can contact Bajaj Housing Finance Limited for financial assistance.

MHADA Lottery Scheme Eligibility Criteria 2022

Here are the eligibility parameters of the MHADA lottery scheme –

Applicants should be at least 18 years old
They must produce a domicile certificate that states that they have a resident of Maharashtra for 15 years.
Individuals applying for this scheme must have a PAN card.
They must produce income proof of that financial year. It is up to Rs.25,000 for EWS, Rs.25,001 to Rs.50,000 for LIG, Rs.50,001 to Rs.75,000 for MIG, and for HIG it is more than Rs.75,000.

Documents Required for MHADA Lottery Scheme

Besides meeting these eligibility parameters, individuals need to submit the following documents required for MHADA lottery –

PAN card
Aadhaar card
Domicile certificate
Birth certificate
Cancelled cheque
Contact details of the applicant
Passport size photographs

MHADA Online Application Process

Following is a step-by-step guide on the application process of MHADA lottery –

Step 1: Visit the official website of MHADA.

Step 2: Complete the registration process, for which you need to generate a username and provide some basic details like name, occupation, PAN, and likes. Also, enter a valid contact number for future reference.

Step 3: Following your registration on this portal, you need to log in and then start the application process. After logging in, you can see the schemes currently available. You can then select MHADA Lottery and provide income group, reservation category, and applicant’s type. Additionally, you need to enter the scheme code available on the brochure or online annexure. After that, enter bank account details, and reaffirm that you or your family do not own any property in Maharashtra. Review and confirm these details before submitting.

Step 4: Once applied online, you can then pay the fees via different online payment methods. Furthermore, you need to scan and upload a cancelled cheque for online payments. Otherwise, you can also do the same via demand draft (DD). In the case of DD payment, you need to print and submit the application form.