Borrowers who acquire a top-up loan on their housing loan to repair or renovate their property are eligible to claim tax benefits under Section 24. They can realise annual tax deductions of up to Rs.30000.
However, if you utilise the principal amount to purchase or construct a home, the tax benefits of Rs.1.5 lakh and Rs.2 lakh are available on the loan’s principal repayment and interest payment portions, respectively.