A home loan statement is an important document for staying up to date on your home loan and for claiming tax deduction on interest payments. A home loan statement can help you keep track of your yearly finances and allow you to plan your expenditure for the entire year. However, it can be a little confusing to figure out exactly how to make use of your home loan statement or even know precisely what one is if you have never taken up a loan before. Read on to find out more.
What is a Home Loan Statement?
If you have taken out a housing loan, then at the beginning of every year, your bank will send you a statement giving some key information about the loan, including how much of the total interest and principal is due for the year. This statement can then be used to avail tax deductions by using it as a declaration of investment proof.
Tax benefits are also provided for under-construction properties as per the Income Tax Act. Your home loan statement serves as proof of the interest you pay during the pre-construction period, and deduction on this interest is repaid in 5 equal instalments. The maximum total value of these deductions, however, cannot exceed Rs. 2 lakhs.
The statement will show you:
- A complete history of the repayment of your loan
- The loan amount
- Start and end dates
- Interest rate
- Type of interest (fixed or floating)
- Applicable interest rate and type of interest applied
- Total amount repaid
- Details of any missed repayments and the change in the principal amount because of them
- Details of part pre-payment
- Amount expected to be repaid in a particular year
How Can I Access My Home Loan Statement?
To access your yearly home loan statement at Tata Capital, simply sign in to the customer portal. You can then view and download this statement. This document will serve as a proof of every repayment you have made on your housing loan over the years, and without it you may end up losing track of all the payments you have already made.
What Tax Benefits Can I Avail?
You can claim a tax deduction on the interest you paid during the year under Section 24 of the Income Tax Act, up to a maximum of Rs. 2 lakhs. If the property has been rented out, there is no upper limit on the amount of tax deduction. Similarly, you can also claim a deduction on principal repayment up to a maximum amount of Rs. 1.5 lakhs under Section 80C if the property is not sold within 5 years of possession.
Tata Capital offers the most flexible home loan eligibility criteria and multiple repayment methods. Our home loan interest rates start at 6.70% only! With Tata Capital’s housing finance, you can buy your dream home with ease!