Are there any tax implications for LAP?

There are no direct tax benefits or exemptions available on loans against property (LAP). This is because the purpose of taking a LAP is not necessarily for acquiring a residential or commercial property, which could have availed tax deductions on interest paid under sections 24 and 80C.

However, a key tax benefit is available on the interest paid for a loan against property (LAP). Under Section 24(b) of the Income Tax Act, borrowers can claim a deduction of up to ₹2 lakh per year on interest repaid for a LAP. This holds true for LAP taken against both self-occupied residential properties and rented commercial establishments.