If you have taken a loan, this is important to know! ☀️

While you can claim tax deduction on principal and interest of home loan but most taxpayers are unaware that even 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) - 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)✨

This includes any service fee or other charge in respect of the loan amount. 🌱

Hence even the processing fees charged on your loan is tax deductible?😌

This is a lesser known tax saving hack so make sure you share it with your friends! 📣

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