Buying a home is a dream come true for individuals. A home of one’s own is a place for them put their feet up and connects them with people they love. But, most often people don’t know that their slice of heaven also gets them tax benefits.
Under section 80C, 24B and 80EE of the Income Tax Act, 1961, buying a residential property are qualified for certain deductions.
Nowadays the current real estate market in Navi Mumbai is great and it is also the right time to take advantage of that fact.
Listed below are the deductions under the Section 80C:
The principal amount of the home loan availed by a person for a Property in Navi Mumbai is eligible for a tax deduction. The maximum tax deduction is at Rs.1, 50,000. This amount also includes the amount saved in mutual funds’ investments, PPF, tax-saving fixed deposits, NSC and Senior Citizens savings scheme. This benefit can be availed by the buyer only if the property construction is completed and the buyer receives the completion certificate.
In case, if the buyer has taken the loan for extension and renovation of a property, the buyer can avail the benefit only after the renovation is complete.
This section deals with interest paid on the home loan. The loan can also be taken for construction, restoration, overhaul, renewal, or purchase of a residential property. The maximum deduction for this section is Rs.2 lakhs. If the buyer (taxpayer) has a self-occupied Flats in Ulwe, then he/she can claim the deduction. In case if the property is not self-occupied there is no maximum limit to claim the deduction, which allows the taxpayer to claim whole loan interest as a deduction.
80EE covers the income tax rebate for first-time buyers. This rebate focuses on the interest payments of the home loan. It provides an additional deduction of Rs 50,000 over and above the tax deduction of Rs 2 lakh under section 24 and Rs 1.5 lakh under section 80C. The deduction is allowed only if the value of the property purchased is less than Rs 50 lakh and the value of the loan sought is less than Rs 35 lakh. The benefit will be available till the time the home loan is repaid.
In the event of purchasing a property in projects in Ulwe, this deduction is very useful for buyers who are taking a home loan for the first time. The most advantageous point of this section is that it is available till the home loans tenure.
Many Builders in Navi Mumbai also inform their buyers of the tax benefits of their purchase. Buying a home comes as a boon for people who want to own a property in the fast-growing Indian real estate sector. For the first home, both, ‘repayment of principal amount’ and ‘payment of interest’ are eligible for tax benefits. For buyers availing a loan for renovation, the section 24B is very much beneficial.