Things You Should Know About Tax Benefits of Investing in Real Estate

Posted February 6, 2020 by radiusdevelopers

Investing in real estate in Mumbai is one of the best ways to achieve wealth and financial freedom.

Investing in real estate in Mumbai is one of the best ways to achieve wealth and financial freedom. Owning a property is somewhat analogous to being a small business owner, which makes it easier to deduct quite a few expenses. Purchasing a house on a loan lets you enjoy multiple tax benefits and exemptions that helps you save tax, but also help in managing smooth cash flows. However, Tax law is a bit complicated.

Here We Share The Greatest Tax Advantages of Real Estate Investing:

Section 80C:

Under this section you can claim tax benefits on the repayment of the principal amount. You can claim deductions on investments made in the return of income. The income should be for the year in which the investment was made. The maximum tax saving limit is Rs 1.5 lakh. There is no minimum limit.

Capital Gains:

A capital gain can be short term or long-term. You can claim capital gain on income taxes. Short-term capital is taxed as ordinary income, so it depends on the tax bracket. A long-term capital depends on the income, your marital status, etc.

Section 24:

Section 24 allows you to claim exemptions on the interest you pay on house loans. This section goes by the title ‘Deductions from income from house property’. Under this section, deductions are allowed from the income that an individual earns through house property. You can do only 2 types of deductions; Net Annual Value which is Standard deduction and Interest on Borrowed Capital. No other deductions are allowed under Section 24.

No Income Tax:

The IRS does not normally consider real estate investment to be a “business” so you have no “earned income,” which means there is no tax under FICA.


Some might consider depreciation as the most powerful tax benefit of investing in real estate. Depreciation expense is typically the largest tax deduction available to real estate investors and can help improve their cash flow by reducing their tax liabilities. Over time, the real estate property one has invested in starts to break down. Only an income-producing property based on wear and tear is allowed to be written off.

Radius Developers real estate has some of the best Upcoming Residential Projects in Mumbai. Thus making it an ideal place to invest and help you reap tax benefits.

Mumbai has become a hub of real estate investments. When it comes to investing in a residential Property in Mumbai, Harbour Heights Mazgaon has everything you need. This property has amenities such as a clubhouse, sporting facilities with green living and a contemporary lifestyle and all that you want to make your life gratifying.
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Issued By Radius Developers
Country India
Categories Construction , Property , Real Estate
Tags 2 bhk flat in mazgaon , 4 bhk flat in mumbai , duplexes in santacruz west , luxury apartments in hughes road , luxury apartments santacruz , properties in hughes road , residential projects in bkc , residential projects in hughes road
Last Updated February 6, 2020