Can I claim a tax deduction for payment of processing fee? How to claim?
Yes you can claim a tax deduction for payment of processing fee on your Home Loan. Most taxpayers are unaware that charges related to their loan qualify for tax deduction. As per law, these charges are considered as interest and therefore deduction on the same can be claimed.
Under the Income Tax Act, Section 2(28a) defines the term interest as interest payable in any manner in respect of any money borrowed or debt incurred (including a deposit, claim or other similar right or obligation).
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Whenever you are applying for home loan, you must also know Tax benefit for Home Loan. You can get home loan tax benefits under section 80C of income tax act of India. Tax benefits upto 1,50,000 can be claimed. You can also get tax benefit on your second home loan.
You can visit any good website or online loan app to get the detailed information on tax benefits.