![]() ![]() In addition to this, you need also avail interest rate deduction and reduced interest rates for pre-construction. However, to avail that you need to convert the plot loan into a regular home loan. Under Section 24 of the Income Tax Act, you are eligible for an annual deduction of Rs.2 lakh. You can also get tax benefits on the interest portion of the loan under Section 24 after construction of the house is completed and you start residing in the house. ![]() As per Section 80C of the Income Tax Act, you can avail deduction on the principal repayment component up to a maximum of Rs.1.50 lakh per annum. The Tax Deductions can applicable only when the construction is completed. Tax benefits on plot loans can be availed only if you construct a house on the plot. Get Checklist: Documents Required for Home Loan How to Get Tax Exempted from Plot Loan? Tax receipts for taxes paid by the landowner.Layouts / drawings of the plot, duly approved by the Town Planning Authority.‘No Encumbrance’ Certificate for the plot.Original documents pertaining to ownership of the land.The documentation requirements are subject to change depending on the eligibility criteria laid down by different lending institutions.Īdditionally, you may also be required to provide the following documents pertaining to the land. Listed below is the list of basic documents which you will need to furnish while applying for a plot loan. What are the Documents Required to Apply for Plot loans? Should be between 18 and 65 years of age.Should be a salaried or self-employed applicant.The eligibility criteria which needs to be fulfilled in order to avail a plot loan are listed below: What is the Eligibility Criteria for Plot Loan? Tax benefit under Section 24 and 80C of Income Tax Act.Can be availed for purchase of residential land.Some of the benefits of availing plot loans are listed below: The difference between plot and home loans is that a plot loan can be availed for the purchase of the land where the house will be constructed later. Also known as land loans, it is often confused as being same as a home loan. Plot loans are a unique banking product designed to facilitate the purchase of a plot of land. All you need to do is enter the loan amount, tenure in months, the interest rate and the processing fee and click on ‘Calculate’. Using an EMI calculator will help you in knowing the amount which needs to be paid as EMI once you avail the plot loan. Note: The EMI is calculated after considering the loan amount to be Rs.1 lakh, tenure being 120 months and the interest being the lowest as mentioned in the table above. Compare: Home Loan Interest Rate all Banks ![]()
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