Apply For Personal Loan

Loan EMI Calculator

How to get tax benefits on a personal loan?

How to get tax benefits on a personal loan?

Generally, personal loans are not taxable, since the loan amount is not considered as a part of your income when you’re filing income tax returns.This means you don’t’ need to pay any income tax on personal loans.
 
Section 24(b) of the income tax Act, 1961, allows for a tax rebate on personal loans if the amount is used for certain purposes like the home renovation or improvement. In this case, the interest rate paid on personal loan repayment up to Rs.30,000 can be claimed as a deduction from the total taxable income.
 
Personal loans are unsecured loans that can be availed without any collateral. It is the most popular loan type used for various personal purposes like wedding expenses, home renovation, and education or for paying medical bills.
 
Since there is no particular mention for a personal loan in the Indian Income Tax Act, the purpose for which a personal loan was availed will be taken into consideration in order to grant tax deductions for a personal loan.
 
Although personal loans are not taxable, you can enjoy the benefit of tax deduction in a personal loan, if you put the loan amount to specific end-use.
 
Listed below are the three cases to get tax benefits on a personal loan:
 
  • Loan for home improvement or renovation - Tax rebate on a personal loan is possible if the loan amount has been utilized to meet expenses related to home improvement or renovation while reducing your tax liability effectively. The sanctioned loan amount should either be used to buy or improve a residential property and then you are eligible for tax deductions for the interest paid within the financial year.
 
  • Loan for business growth Also you are eligible for tax exemption if the instant personal loan amount has been used for expanding a business without any difficulty. You can claim the interest paid by investing in your business. This is especially important if you are a self-employed individual of a small business. There is no maximum deduction for such a claim and it merely depends on the interest payment for that financial year.
 
  • Loan for other assets Other income-producing assets are many like investing in shares, gold jewelry, cars or two-wheelers. If you are taking a personal loan to purchase any of these products, you are liable for tax benefits against the same. Interest paid on the same is considered the cost of asset achievement.
 
The above investment made from a personal loan reduces the total investment gains and provides personal loan tax benefits.
 
In this respect, SimplyCash instant personal loan powered by HeroFinCorp fits the norms and offers a tailored borrowing experience that is quick and easy with minimal and paperless documentation.
 
SimplyCash instant personal loan app arranges for disbursal within 24 hours after the approval and verification gets over. Eligibility criteria and documentation for personal loan tax benefits are simple and hassle-free.
 
Personal loan Eligibility and Documentation process
 
  • Should be a resident of India
  • Should be in an age group of 21-58 years
  • Should earn a minimum income of Rs.15,000 monthly
  • Six months bank statement/salary slip mandatory for salaried and self-employed
 
The personal loan documentation process for tax benefits

The basic documentation includes your Aadhar card, PAN card, address proof, and personal details. The online personal loan documentation process is paperless and does a quick verification for an instant disbursal of funds directly into your account.
 
Hence, though tax benefits on personal loans are rare, you can enjoy with specific investments only.
 
 

SimplyCash

SimplyCash powered by Hero FinCorp is an instant personal loan app providing cash loans of upto INR 1,50,000 for both salaried and self-employed individuals. Driven by technology and fuelled by innovation, SimplyCash solves instant cash requirements of customers in just a few simple clicks without any physical documentation or meeting. The mobile app is available to users through all popular Android play stores like Google play store, Samsung store, Xiaomi store etc. With one of the most widespread presence, SimplyCash currently offers its services in over 90 major locations in India. Known for a seamless process, instant loan disbursal and transparent pricing - SimplyCash truly lives upto the expectations of being a 'Hero' product.  

Note: SimplyCash is a duly registered trademark and is a loan product offered, managed and operated by Hero FinCorp. Hero FinCorp Limited is a Non-Banking Financial Company registered under the provisions of Reserve Bank of India ("RBI") and is in the business of finance and lending.

Accepted Banks:

ICICI BANK LTD HDFC BANK LTD IDBI BANK STATE BANK OF INDIA PUNJAB NATIONAL BANK YES BANK INDUSIND BANK KOTAK MAHINDRA BANK LTD

IDFC FIRST BANK LTD AXIS BANK BANK OF BARODA TAMILNAD MERCANTILE BANK LTD INDIAN OVERSEAS BANK INDIAN BANK RBL BANK LTD DEUTSCHE BANK AG CITY UNION BANK LTD FEDERAL BANK SOUTH INDIAN BANK STANDARD CHARTERED BANK CANARA BANK KARNATAKA BANK LTD CITI BANK BANDHAN BANK UNION BANK OF INDIA DCB BANK LTD DBS BANK INDIA LTD THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD DEUTSCHE BANK UCO BANK

Secured
Safe & Secure

SimplyCash is managed and operated by Hero FinCorp Limited, and it follows high data and system security standards.

View Details

SimplyCash Insights

Install App Instant Small Cash Loan App Online
Useful Links

Copyrights @ 2021 All Rights Reserved Powered by HeroFinCorp Ltd.