Are there any tax benefits associated with a loan against property?

There are certain tax benefits that may be available on a loan against property:

Tax benefit under Section 24(b) - Salaried individuals can claim tax deductions up to ₹2 lakhs on interest paid if the loan against property is utilised towards the purchase/construction of a new residential house property.

Tax benefit under Section 37(1) - If the loan amount is used for business purposes, interest paid can be claimed as deduction subject to limits.

However, no tax exemption is allowed if the loan is used for other purposes like education, travel, medical bills etc. Also, the principal repaid does not qualify for deduction under Section 80C.