What Should You Know About Home Loan Statement?
Most people earn a monthly income and spend it on their needs and wants. The daily or monthly expenses might leave little room for savings. And buying a house seems like a long-lost dream. The best way to purchase a home is via a Home Loan. Using a loan, you can pay for the cost of the home upfront and start living in it.
Since Home Loan repayment tenure is lengthy, you might lose track of EMI payments. Well, these chances are very low as a loan statement from the Housing Loan provider helps backtrack the EMIs. Read on to understand more about a Home Loan statement.
What exactly is a loan statement?
A loan statement is provided to the borrower by the lender. Usually, lenders offer loan statements at the end of a financial year or repayment cycle. It contains a detailed summary of loan payments within the given financial year or repayment cycle. A loan statement is also known as a provisional certificate. With the help of the loan statement, debtors can claim tax exemptions. And also helps backtrack the EMIs and know the outstanding loan amount.
A Home Loan statement offers a complete track record of EMI payment till the date of issuing. You’ll find everything mentioned in the loan statement, from the prepayment amount to missed EMIs. Every EMI payment is reflected in the loan statement.
You can consider a loan statement as the loan repayment history. This statement helps you recall the exact date when each EMI was paid. The loan statement also consists of when the Home Loan was issued.
It is crucial to note that the loan statement also acts as proof of loan repayment. Besides tax exemptions, the loan statement can help close the Home Loan at the end of the repayment tenure. All the details included in the loan statement are as follows:
• The principal amount of the Housing Loan
• Starting and ending date of the repayment tenure
• Type of Home Loan interest rate (fixed or floating)
• The interest rate applicable throughout the repayment tenure
• Principal loan amount repaid till the date of statement issuing
• EMI amount for each month
• Outstanding Home Loan amount to date
Why do we need the loan statement for taxation?
A Housing Loan allows individuals to claim rebates on annual taxes. It is with the help of this an individual can claim a tax rebate on your Home Loan.
- You can claim a deduction of up to INR 1.5 Lakh in taxes against your Home Loan principal payment. And this tax benefit is available under Section 80 of the Income Tax Act (ITA).
- Other tax deductions for Home Loans are available under Section 24(b) of ITA. Under this ITA, you can get tax deductions of up to INR 2 Lakh for interest paid on Home Loans.
While filing your annual tax return, claim tax deductions on Home Loans under the ITA mentioned above. And to claim these deductions, you need to attach proof of loan payment. In such a situation, a Home Loan statement will prove your repayment.
Attach the loan statement while filing the income tax return online. The concerned authorities will cross-check the submitted loan statement. And you will get a tax exemption if the loan statement is authentic. Some people might find the tax filing process complicated due to a lack of knowledge. Well, don’t miss out on claiming your tax deduction on Home Loans, seek help from a tax expert to claim tax deductions on Housing Loans.
How to get the loan statement from the lender?
Most lenders offer loan statements to individuals at regular intervals. Some lenders send frequent emails to debtors with attached loan statements. When you haven’t received the loan statement, get in touch with your lender and ask for one.
Try visiting the official website of the Home Loan provider and logging into your Home Loan account. Find the option of applying for a loan statement online and get one without any hassle. The lender will immediately send you the loan statement via mail. Since loan statements are essential for filing taxes, you should obtain them from the lender regularly. Apply for a loan statement with your lender right away!