First-time home buyer tax benefits one should never miss 

Godrej Splendour /First-time home buyer tax benefits one should never miss

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Many financial instruments across the world are trending with digitalization and more people are getting aware of it. Financial instruments like crypto which is used as a digital currency have seen major growth in recent years.

Investing in real estate is one such financial instrument which is safer and more convenient than others. The chances of risks are minimum thus the money flow can be managed efficiently without any worries.

Just like stocks and bonds the professional real estate investor can sell the property at a higher rate or earn an extra amount of money while you own it. Many institutes provide financial support if you are a first-time home buyer. In this blog, we will discuss the first-time home buyers' tax benefits should never miss.

Every investor has their strategy which they believe can results in fruitful profits too. The stock investors use fundamental and technical analysis meanwhile the real estate investors use leverage investment strategy. Leverage investment includes borrowing capital and utilizing it to increase the potential of returns.

The common people who cannot afford huge real estate investments can avail of schemes provided by the government on home loan subsidiaries. Here are some of the points by which you can save tax:

Reduction of home loans:

The government has made many facilities under many acts which assure a good amount of tax concession on your first house. According to section 80 EE of the Income Tax Act, 1961 the people can get benefited from up to Rs. 50,000 by tax exemption on their home loan.

On the total gross income, one is allowed to claim a deduction on interest of around Rs. 2,00,000 per annum. One should do good research as there are certain conditions to avail of these facilities which come under section 80 EE and section 24 of the Income Tax Act, 1961.

Enlarging the deduction claim time:

A tax credit for first-time home buyers is available if a buyer has paid up to the interest of Rs. 2,00,000 which can be deductible from the total income. There are certain criteria by which this deduction claim time can be increased. It is applicable if construction is completed within 5 years and should meet the conditions applied to it.

Tax subsidiary offered by the government:

The weaker section and which comes under lower income groups are offered by government subsidiaries on home loans. Pradhan Mantri Awas Yojana also offers many facilities which are beneficial for home buyers.

The income tax act, 1961 under section 80GG offers reduced expenses acquired by the individual at 10% of his total income. The reduction of expenses is offered on furnished as well as on unfurnished houses.

Cosmopolitan environment

The people living here are not of a single culture, they see the part as a hotspot not only for living but also for settling down on long term basis because of the emerging importance of the city sue top the upgoing IT sector here and all the facilities that are available right here.

Bangalore real estate market is also on the top and is seeing the heights because of the settling down of more and more people here, this allows people to settle down here at a higher pace, and also find numerous options for dwelling here.

Conditions to get tax benefits for the first-time home buyers:

You shouldn’t possess any other property while taking a loan

he amount of the loan should be less than Rs.35 lakh

The value of the property should be in the range of Rs.50 lakhs

One should apply for a loan from a Financial company

The loan must be sanctioned within the same financial year

The government has made many budget-friendly laws for new buyers and for those who come from economically backward classes. Without any difficulty, one can avail of these offers and buy their first dream house with maximum tax benefits.

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