Buying a home is a dream of a lifetime. Yet it remains one of life’s most daunting decisions, particularly financially. What if we told you there’s no better time to buy your dream home than right now? In addition to several provisions made by the Indian Government to enable builders and homeowners, home loans have several tax benefits.
Deduction on Principal Repayment under 80C
The Principal component of your yearly home loan EMI is eligible to be claimed as a deduction under Section 80C. The maximum deduction allowed is INR 1,50,000, including other components like your Provident Fund, Mutual Funds etc. Do note that you can claim this only if the property is fully constructed and not sold within 5 years of purchase.
Additionally, buyers can claim Stamp Duty and registration fees as tax deductions under 80C even if they have not taken a loan. This can be claimed only in the year the expenses have been incurred.
Deduction on Interest Repayment under 24B
Homebuyers can claim interest paid on home loans as a tax deduction up to INR 2,00,000. This is applicable if the construction has been completed within 5 years of taking the loan. However, the limit of INR 2,00,000 is not applicable if the house has been let out.
Benefits for Joint Home Owners
Joint borrowers can claim a tax deduction on interest repayment of up to INR 2,00,000 each and up to INR 1,50,000 each for principal repayment. This makes it highly beneficial for families and couples to take a joint loan and become co-owners of a property.
Standard Deduction of 30%
Homeowners can claim a standard 30% deduction of the annual rent they receive, which makes real estate a solid investment option.
Invest in your dream home with Suraj’s future-forward 1, 2 and 3 BHK homes in Dadar, Mahim and Prabhadevi. Contact us to book a site visit today.