Are there any tax benefits for repayment of Loans Against Properties?
Yes. Self-employed individuals can claim tax exemption from a LAP if the loan has been utilized for business purposes. The benefits can only be claimed against the total amount paid as interest and other associated fees and charges. These can be claimed as business expenses under Section 37(1) of the Indian Income Tax Act. Salaried individuals can claim benefits of up to Rs.2 Lakhs, under Section 24(B) of the Income Tax Act, if the LAP has been used to purchase another residential property.