property loan

Each co-owner can claim a deduction of maximum Rs 1.5 lakhs towards repayment of principal under section 80C. ... It's important to note that the tax benefit of both the deduction on home loan interest and principal repayment under section 80C can only be claimed once the construction of the property is complete

Hi Tejaswini,
To brief, principal and interest paid on housing loan can be claimed as deductions u/s 80C and 24(b) respectively. Maximum limit u/s 80C is Rs. 1,50,000 and u/s 24(b) is Rs. 2,00,000 if the property is self-occupied, on the contrary, there's no limit u/s 24(b) if the property is let-out.

From FY 2017-18 and AY 2018-19, the maximum allowable deduction for interest on house property has been capped at Rs. 200,000 (Rs. 2 lakh only).This limit of Rs. 2 lakh is applicable to each tax payer and is the maximum deduction available for interest paid on all properties owned by the tax payer

this is not a home loan and property hypothecated to take loan

It all depends on the loan you take. For example Home Loan, Educational Loan, Personal Loan etc.

Contrary to popular belief, loan against property extends tax benefits to borrowers under Section 37(1) and Section 24(b). To elaborate, borrowers can claim tax benefits on the amount of interest paid and charges cleared, including documentation charge and processing under Section 37(1).

On the other hand, if the loan amount is used to purchase another house property, borrowers can claim interest up to Rs.2 lakh under Section 24(b). A borrower can put the funds to such usage to claim these benefits.

Intending property loan borrowers should thus become familiar with factors like Loan against property interest rate, eligibility criteria, loan value and tenor and tax benefits, among others. Doing so, they will not only be able to make an informed decision pertaining to the credit but will further be able to manage it smartly.