There are numerous tax benefits on home loans taken
An individual can avail tax exemption on a maximum amount of Rs. 1 lac on the principal repayment under section 80C subject to fulfilment of prescribed conditions.
As per the Income Tax Act of 1961, a deduction of up to Rs. 1.5 lacs can be claimed as tax exemption on the interest that is paid towards the home loan.
Profits from a property where one is invested for more than three years are tax exempted if that sum of money in re invested in another property. This is one of the reasons that the real estate sector is a fantastic tool towards wealth creation and the reason for the sustained strength of the sector.