Know how to Avail Tax Benefits From A Personal Loan?

You might think that you cannot avail tax benefits from a personal. But the good news is that, in some particular cases, you can avail tax benefits. Yet instant personal loan is the first choice of the borrowers and approved easily.

Some ways a personal loan can be eligible for tax benefits are:

• Personal loan for business:

If you invest your loan amount in business, interest can be declared as an expense. Your capital gains will be reduced, thus reducing the tax liability.

• Personal loan for home renovation:

Principal amount for home renovation is eligible for gaining tax benefits. You can save upto INR 1,50,000 of the loan amount under section 80C of the Income Tax Act.

• Personal loan for a residence:

Under Section 24 of the Income Tax Act, if you use the personal loan amount to build or purchase a property, you can save upto INR 2,00,000 on a self-occupied house. Whereas, for a rented house, there is no cap.

Conclusion

You can get a personal loan only if you fulfil the personal loan eligibility criteria of the lender. You can get tax benefits on the personal loan if you submit suitable proof to income tax authorities.

Additional Read: How to Avail Tax Benefits on Personal Loan?