Do you have a housing loan? If yes, then you can claim the Interest expense on the housing loan under section 24 and a deduction of principal repayment of the housing loan under section 80C while calculating your Income Tax liability. These tax benefits are available only if you opt for the old tax regime.
But if you think that claiming these tax benefits will reduce your overall tax outflows without considering the impact of future tax outflows, then you must re-assess your calculation. This is because Union Budget 2023 has issued certain clarifications and amended Section 48 of the Income Tax Act. These clarifications and amendments may save your tax outflows in the current year but they will increase your tax outflows for future years. Let’s look into the details of such changes introduced by the Finance Bill, 2023.
