The Indian government offers great tax benefits to home buyers and property investors, this mail will help you save some extra rupees on the properties you own.
Some of these you might already know, but it never hurts to brush up on your knowledge, right?
Here are 5 ways you can save money from tax deductions
1. The interest you pay on your EMI – Home loan can be claimed as tax benefits.
Section 24 of the Income Tax Act allows property owners to get a tax benefit of a maximum of Rs. 2 lakhs each year from the year the construction of the property is completed.
With a condition is that you must be named both an owner and a co-borrower (in the loan) to claim this tax benefit.
2.The principal repayment can be claimed as deductible on your taxes!
Income Tax Act – Section 80C allows Home buyers to get a maximum tax benefit of Rs. 1.5 lakh on the principal repayment done through EMIs.
3.While buying a property, keep count of the amount paid for stamp duty, registration fees!
Income Tax Act – Section 80C and Section 24 will help you claim these tax benefits in the year when these payments for stamp duty, registration fees were made.
Apart from these, the processing fee, service fees or any prepayment fees paid for getting a home loan sanctioned can also be claimed.
4.Deduction on pre-construction interest
- Section 24 and Section 80C of the Income Tax Act you can get deductions on the pre-construction interest by claiming the sum amount in five equal instalments.
- Note that this deduction is only available in the financial year in which the house is acquired and cannot be claimed for an under-construction property. The maximum deductible amount is Rs 2 lakh and the house must be self-occupied for claiming this tax benefit.
5.Benefit for first time home buyers
- Section 80EE provides tax benefits to first-time home buyers. Albeit with a few conditions such as the value of the house should be Rs 50 lakhs or less and the loan taken for the house must be Rs 35 lakhs or less.
- The deduction under Section 80EE is over and above the Rs 2 lakh limit under Section 24 of the Income Tax Act.
Do you want help in getting the most of your property investments? We can help you ,
Visit us at www.homzhub.com or call at +91 8088-900-900 to contact us.