Investing in real estate has been proved to be a sure shot way to generate wealth. In comparison to gold or equities, real estate is safer from the long-term perspective. Besides the several other benefits, one important advantage of buying a property for investment purpose is the favorable tax implications. With a wise plan, you can save taxes throughout the life of a property i.e., while buying, while retaining and while selling.
AT THE TIME OF BUYING
To make home buying easier for the buyers, government offers several types of tax rebates while purchasing a property. If you fund the purchase through home loan, you can claim a deduction of up to 1.5 lakh under section 80C of the Income Tax Act. With respect to the interest on home loan, a tax rebate of 2 lakh is offered by the government under section 24(b) for a self-occupied property. You can deduct the entire interest amount from your taxable income if the property is not self-occupied. However, you cannot claim the same if the property is under construction.