Secrecyfilm

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Hard Drive Failure Signs that you should Know

    May 31, 2023

    Software Problems? Why Professional Mobile Repair Shop is the Solution

    May 31, 2023

    The Best Formula for Intraday Trading Success

    May 31, 2023
    Facebook Twitter Instagram
    Trending
    • Hard Drive Failure Signs that you should Know
    • Software Problems? Why Professional Mobile Repair Shop is the Solution
    • The Best Formula for Intraday Trading Success
    • Revolutionize Your Job Search with Briansclub Dumps: Here’s How
    • Charlie Chaplin Cause Of Death: You All Should Know
    • U Part Wigs and Undetectable Lace Wigs: Your Ultimate Guide to Natural and Versatile Hair Transformations
    • The Importance and Benefits of Commercial Air Duct Cleaning
    • How to Record Live TV Shows on YouTube TV: Step-by-Step Guide
    Wednesday, May 31
    Secrecyfilm
    • Home
    • News
      • Business News
      • Celebrity
      • Politics
      • Movie
    • Tech
      • Tips & Trick
    • Business
      • Finance
      • Cryptocurrency
    • Entertainment
      • Sports
    • Home & Decor
      • Gardening
      • Real estate
    • Lifestyle
      • Fashion
      • Food and drinks
    • Pets
    • Review
    • Contact
    Secrecyfilm
    Home»News»Business News»How One can Get Tax Benefit on Personal Loan in 2021?
    Business News

    How One can Get Tax Benefit on Personal Loan in 2021?

    Kathe LousisBy Kathe LousisAugust 23, 2021Updated:August 23, 2021No Comments
    Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Personal loans are considered the easiest loan to avail of. This is because a lender asks for only a few details to provide personal loans. Another best part is the freedom of using loan credit. Although unsecured loans like personal loans are more expensive than secured loans, still preferred because of easy accessibility and lesser restrictions. Here is the post for a closer look at tax benefit on personal loans.

    Are personal loans taxable?

    A personal loan is not considered under the purview of taxation as it is not a part of your income. You do not own loan money as you do with your salary, profit, or returns on investments. You are liable to repay the loan and, therefore, it is considered an expense, and there is no income tax levied on personal loans. However, it is applicable to a personal loan taken from a reputed lender like non-banking finance companies (NBFCs) or bank. 

    Personal loan tax deduction

    There is no specific deduction for personal loans. However, personal loan borrowers can take advantage of tax deductions based on the end-use of loan credit under the Income Tax Act of 1961. 

    If you have used the loan credit for the below mentioned specific purpose, you can avail of personal loan tax benefits: 

    • For business expansion 

    In this case, the interest paid can be claimed as an expense. This will reduce the tax liability of the business as net taxable profits will decrease due to such expenses. There is no maximum cap specified for the interest to be considered as an expense. You must have proper documents to prove the end-use of the loan amount. 

    • For house improvement or renovation 

    If you have utilized the loan credit towards home renovation, you can take advantage of the tax rebate under Section 24(b), Income Tax Act of 1961. The maximum interest amount capped is Rs. 30,000.

    • For the purchase of other assets

    If you have invested the loan amount in non-residential property, gold, stocks etc., you can claim a tax deduction on the interest paid on the loan. The interest paid will be considered as the cost of acquisition of the asset.

    • For educational expenses

    You can utilize personal loan finance to meet expenses involved in higher education. The deduction is available for eight years or until loan repayment, whichever is earlier.

    Benefits of a Personal Loan 

    Personal finance carries several points on its positive side. Some of these are mentioned below: 

    • Avail finance without collateral

    If you cannot mortgage any asset, a personal loan can provide you with monetary support in the hour of need. Lenders do not require any asset as collateral against a personal loan.

    • Quick processing with minimal documentation

    A personal loan is available with minimal paperwork for processing, as an unsecured loan does not involve many formalities. You only need to submit your KYC documents and savings account statements, thus, faster loan processing.

    • High loan amount of up to 25 lakhs

    Through a personal loan, you even meet your large expenses. If you have maintained a high credit score, you can raise a substantial amount that can go up to Rs. 25 lakhs. The lender will need proof of your steady income source as well.

    • Easy to meet the eligibility

    • The applicant’s age should be between 20-60 years. 
    • The applicant must be a resident of India. 
    • The applicant should have a credit score of 750+. 
    • Personal loans are available for every salaried individual in India.
    • The minimum salary for a personal loan depends on your city of residence. Most lenders prefer Rs.25,000 monthly salary. However, credit score and salary limits vary from lender to lender. If you have maintained a high credit score, you can negotiate on eligibility criteria.

    Thus, a personal loan is an excellent medium of financing numerous expenses at easy terms and conditions without collateral. Simply put your basic details, name, PAN and contact details to check for pre-approved personal loan offers with renowned lenders like Bajaj Finserv. Besides personal loans, they provide pre-approved offers on home loans, and credit cards also. 

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Kathe Lousis
    • Website

    Related Posts

    Revolutionize Your Job Search with Briansclub Dumps: Here’s How

    May 31, 2023

    How VIPs Get Enjoyed On Luxury Yachts in UAE

    May 30, 2023

    BigFat Carding Store Hacked: What You Need to Know

    May 21, 2023

    Comments are closed.

    Demo
    Top Posts

    Hard Drive Failure Signs that you should Know

    May 31, 2023

    Hopeful Upstarts Kick Off Men’s Fashion Week in New York

    July 11, 2017

    Urban farming is booming, but what does it really yield?

    July 11, 2017

    9 Gorgeous Fields Of Flowers in France Worth Traveling To See

    July 11, 2017
    Don't Miss
    Tech

    Hard Drive Failure Signs that you should Know

    By ThomasMay 31, 2023

    Are you one of those people who rely on hard drives to store important data?…

    Software Problems? Why Professional Mobile Repair Shop is the Solution

    May 31, 2023

    The Best Formula for Intraday Trading Success

    May 31, 2023

    Revolutionize Your Job Search with Briansclub Dumps: Here’s How

    May 31, 2023
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    Demo
    About Us

    Secrecyfilm is a professional platform where we provide informative content like (News,Business,Tech,Edu,Lifestyle,Sports). We hope you like all the contents provided by us.If you have additional questions or require more information about our website, do not hesitate to Contact through emails at

    pantheonukorg@gmail.com & admin@googdesk.com

    Our Picks

    Hard Drive Failure Signs that you should Know

    May 31, 2023

    Software Problems? Why Professional Mobile Repair Shop is the Solution

    May 31, 2023

    The Best Formula for Intraday Trading Success

    May 31, 2023
    Most Popular

    Hard Drive Failure Signs that you should Know

    May 31, 2023

    Hopeful Upstarts Kick Off Men’s Fashion Week in New York

    July 11, 2017

    Urban farming is booming, but what does it really yield?

    July 11, 2017
    © 2023 Designed by Exposednews.co.uk.
    • Home
    • Privacy policy
    • Contact

    Type above and press Enter to search. Press Esc to cancel.