Tax-saving Benefits of Investing in Properties

Investments are the perfect avenues to plan a secure future. Among all of the investment options, a property purchase is certainly one that offers guaranteed returns. Apart from long-term benefits through price rise, another great perk to buying a property or a home is the tax benefit that you no doubt seek before making any investment.

Here’s why buying your very own property in Vile Parle East or other such areas makes perfect sense:

Repayment of principal amount – Section 80C
When you repay a loan, the principal amount repayments works as a tax-saver under Section 80C. While the benefit is only allowed once the project has been completed and the documents received by the tax-payer, you can enjoy a benefit of up Rs. 1.5 lakhs.

Benefits on loan interest paid – Section 24B
Under this section, one can enjoy tax benefits on the interest amount paid on a home loan by an individual. The home loan can be availed for reconstruction, renewal, purchasing new property, and renewal. Under Section 24B, one can get tax benefits up to Rs. 2 lakhs.

First-time homebuyer benefit – Section 80EE
First-time home buyers have a great advantage when it comes to tax benefits. Under Section 80 EE, these buyers can get the benefit of additional deduction of Rs. 50,000 above the benefits offered by Sections 80C and 24B. However, this is allowed only if the price of the property is below 50 lakhs and the loan amount below 35 lakhs. This benefit can be availed until the time the loan is repaid.

The tax benefits on property purchase can also differ based on the provider of the loan. For example, if you take a loan from your close family, the tax benefits can only be availed on the interest paid unless the lender furnishes a document clearly stating the amounts repaid as principal amount and interest.

Buying your new property in Vile Parle East is sure to benefit you a great deal at this point in time, considering all of the tax benefit options that allows you to save your income.