Tag: property

Tax Benefit on Home Loan

Although the year 2020 has given us a tough time, it may be the best time to invest on the property you wished for since long. Easy home loan facilities gets a cherry on the top of the cake with the tax benefit increased up to Rs 3.5 Lakhs in July 2019 budget. Additional benefit for first time home buyers have also been given as per the policy. This scheme, the deadline to avail which was March 31, 2020, has now been extended to March 31, 2021, by Finance Minister, Nirmala Sitharaman in her Budget 2020 speech.

The total interest amount payable on a housing loan, can be claimed as a deduction from one?s total Gross Income as per the income tax laws. One can claim a maximum of Rs 3.5 Lakhs as deduction amount allowed FY 2019-20 onward for those purchasing residential property under the affordable housing scheme. As a part of the ?Housing for All by 2022? policy of the Government, this deduction under Section 80EEA has been extended to the next financial year.


Features of Section 80EEA

 

Who can avail this deduction?

Only individuals and not any other taxpayer can avail this deduction. For example, Partnership firm, a HUF, AOP, a company, or any other kind of taxpayer, are not entitled to any benefits under section 80EEA.

 

How much deduction can I avail through home loan?

A deduction up to Rs 1,50,000 is available under Section 80EEA for interest payments which is over and above the deduction of Rs 2 Lakhs for interest payments available under Section 24 of the Income Tax Act. Hence, an individual taxpayer is privileged to a total deduction of Rs 3.5 Lakhs for interest on home loan. However, these are further subject to conditions applicable under this section.

 

Is this similar to section 80EE?

First time home buyers are meant to be highly benefited from this policy if one avails a home loan valued up to Rs 45 Lakhs and is sanctioned before March 31, 2021. The middle-class strata of the society will mainly profit from this and affordable housing shall be an integral part of the Government?s Housing for All by 2022 policy.


Conditions Applied on Tax Benefits on Home Loan under Section 80EEA?

 

A financial institution or housing finance company must be lending the loan to the individual to buy property for residential purpose only.

The stamp duty value of the house property should not exceed Rs 45 lakhs.

The individual availing the scheme shall not be qualified to claim deduction under the existing Section 80EE.

The taxpayer must be purchasing a residential property for the first-time and cannot own any residential house property as on the date of sanction of the loan.

The carpet area of the property shall be not more than 645 sq ft in metropolitan cities and 968 sq ft in any other cities or towns.*

The property for which the individual wants to avail this scheme must be approved on or after September 1, 2019.*

 

Inorder to avail tax deduction, one first needs to ensure that the property is individually or jointly owned by the taxpayer and the loan is sanctioned against the individual or jointly with another co-borrower. The home loan certificate must be submitted to the employer for adjustment of TDS whereas, in case of self employed individuals, one must use it while filing tax deduction for self.

 

*These conditions have been specified in the memorandum to the finance bill, but not mentioned in section 80EEA.

Looking For Flats In Kolkata? Are You Ready Financially?

Whatever the reason may be, if you have decided to buy a property of your own, you should make sure you are monetarily prepared. To make the process as stress-free as possible, it is necessary to be prepared prior the search for your dream abode begins. Whether you are relocating or looking for investing in flats in Kolkata, the initial step is to make a plan in advance. And this is exactly where we can be of help.

  1. CIBIL Score:

    While your search for flats in Kolkata hasn?t hit the wall, you can still be ready you?re your CIBIL Score. Knowing your credit score is the first major step that you should take. Check for any miscalculations in the credit report and review it scrupulously to avoid any oversights. It is now easily possible to obtain CIBIL Scores online as well. With a high CIBIL Score you can get home loans at cheaper rates of interest and also easy approvals of loans.

  2. Well-organized Savings:

    Keeping savings in the right amount at the right time helps in paying the down payment easily in future while investing on the interested property. Proper savings can be of great help while making investments in other accessory expenditures while not being worried about the home loan that you have applied for. More than anything it helps to make the financial institutions believe in you and smoothen the loan approval process.

  3. Avoid additional credit:

    Once you have decided to plan for a new home, it is advisable to stop taking additional credit 6 months prior to making an investment or applying for a loan. Swiping your credit card too often may not be a good idea also. It is important to keep in mind that this may have an undesirable effect on your CIBIL Score. Hence, being extra cautious is the mantra.

  4. Check the whims:

    In the process of owning the best of the flats in Kolkata, watch yourself from becoming extravagant in your pursuit. Plan your investments in a manner that you can afford to keep up with what you have invested in. You should be aware of where you need to confine yourself. Maintaining the cash-flow is as necessary as finding solace. It is more important to enjoy your stay than ending up owning an over expensive property which you cannot afford to maintain.

  5. The DRC Fund:

    You may have never even heard of such funds. Well, you are not mistaken. DRC is short for Deposit Reserve and Contingency Fund. Although you are saving for your future investment or you are paying your EMI?s for it, keeping some money aside for your daily requirements is mandatory. The deposit fund should be at least 20% of your total savings. The Reserve Fund, i.e., your daily and monthly expenses, seen or unseen, like repairs, new furniture, etc. must be kept aside. And the last one, Contingency Fund, as the name suggests, for unforeseen expenses such as accessory alteration or renovations.

A range of apartments is available these days in and around Newtown and Rajarhat in Kolkata. Some real estate developers also offer home loan solutions while booking a project with them. They also help you plan your investment to make it easier for you to pay the installments. While you are still searching for the right property, keep an eye on your assets and savings. Let not the search for the perfect home put a hole in your pocket.

Reducing Human Interaction in the Wake of Property Portals

Life has gone extremely busy for the millennials, particularly those who reside in Indian metropolises. To save time, the millennials are resorting to online services and the buying pattern of real estate properties is witnessing a diametric alteration. Gone are the times when people would contact real estate agents, specify their requirements and fix their dates to go and visit the properties. Nowadays, rather than physically visiting the sites, the buyers of real estate properties in Delhi, Mumbai, and Bengaluru, the 3 megacities in India, would prefer to get a 3600 view of the properties on the internet. Even the buyers of apartments in Kolkata are not far behind. They are also fast catching up with the trend. So, let us check out, why people are going online in the matters of purchasing properties.

The Influence of Internet

The internet is a safe and convenient medium for booking real estate properties. There are property portals where multiple reputed builders enlist their properties. In addition, if you conduct an online search for the metro cities of India, it is not hard to find out top real estate builders in Kolkata and the likes which run their individual property mobile apps.

The Benefits

Time saving: Probably what the gen next loves the most is the time saved. Given the time spent to reach the office and get back to home, one hardly gets free hours. While on the move, the millennials can browse through the lists and bookmark the choicest ones.

Cost cutting: No need to pay for the conveyance cost to reach the project site locations as you could share a similar experience with the aid of the top quality images and videos uploaded at the sites. At many online sites, you can even take a look at the 3600 view of the properties that give you a real-life personalized experience- as if you were physically present at the site.
In addition, when you book a property online, you save the money to be paid to the real estate broker in the cases of traditional buying methods.

Property mobile apps: To make your online experience more user-friendly, some builder houses have launched their property mobile apps. If you are having a notion that these apps could only make your process of searching the properties easier or can be at best used to save time, you are wrong.

Multiple benefits of property mobile apps: The lists of benefits you achieve depend on the number of features incorporated into an app. For example, some builders include the information in relation to the proximity of recreation centers, educational institutes, shopping malls and hospitals from the project sites. Such information really serves us a lot if we are planning to buy properties at some developing part of a city.

Direct communication: No need to contact a builder via a middleman. Just note down the contact details furnished online and get in touch with the real estate builders, directly. Get all information from the horse?s mouth.

The reputed builders are fast adopting themselves with the modified scenario. Do not forget to browse through the enlisted properties on the internet which have been built by some renowned real estate company in Kolkata for if you are planning to settle in the city. Wish you happy buying.