The income tax authorities look upon with favor those servicing a housing loan from specified financial institutions. It is up to you to be wise enough to take advantage of the home loan facilities provided by them.

You get a 20% rebate on the repayment of principal during a financial year. Once again, over the years, the principal repayment eligible for rebate has been enhanced from Rs 10,000 to the current limit of Rs 20,000. Stamp duty, registration fee, or other such expenses paid for the purpose of transfer of such house property to the assessee is also considered under this amount.