There are Many Reasons to Buy Under
Construction flats, then ready made apartments. Among the other reason the main
reason is under-constructed properties are available for a discount of around
15-20 per cent as compared to a ready-to-move-in apartments. You would be only
considering this discounts on flats. But, did you also know that there are tax
benefits to be availed, post possession?
If you are
planning for an investment in property with a lower budget and have no plans of
moving in that house in the near future, then we would advise you to book a
house in an under-constructed project. While such properties are available for
a discount of around 15-20 per cent as compared to a ready-to-move-in house,
another big advantage for salaried person is that after taking possession of
the property, this investment which you have done would also help you save on
some taxes.
When a person buys a ready flat or Apartments, can
claim the tax deduction under Section 80 C for repayment of principal amount of
housing loan to the tune of 1.5 lakhs and around 2 lakhs for the interest paid
on that loan in that financial year. “No tax deduction is allowed under Section
24 for property, which is still under construction. It is allowed only after
the construction is complete and the possession is handed over. This is because
according to the Income Tax Act, 1961, a tax payer gets a deduction of 2 lakhs
in respect of the interest paid on the housing loan taken to acquire the house
only if the house is in the physical possession and belongs to the tax payer
during the year. The maximum limit of interest deduction a tax payer can claim
in a particular year is limited to the tune of 2 lakhs and will operate as a combined
limit for the interest of that year plus one-fifth of the construction period
interest. Buyers have an option of paying only the interest amount on the loan
and the actual EMI starts once the possession of the property is taken.
However, if you have already started paying regular EMIs before the completion
of the project to repay the loan amount earlier, you cannot claim any deduction
for the principal repayment that you made on the property while in the
under-construction stage.
The possession of the property should be completed
within three years from the end of the financial year in which the capital was
borrowed for acquisition of the house. If the possession of the house is
received after more than three years from the end of the financial year in
which the loan was taken, then only an interest of Rs 30,000 is deductible each
year.
If the first house is rented out, the income
received from the rented property is taxable and interest paid on a loan taken
for such a property is fully deducted. The other property, being self-occupied,
will have NIL income, but interest deduction on the corresponding home loan
will be limited to Rs 2 lakhs.
What happens if you sell the same
property within five years from which it was completed? In that case, there are
tax implications. The deductions that you enjoyed based on the principal amount
will be reversed and in fact will be lumped together and treated as your income
of the year in which you sell your property.
Now you get an idea of Tax Benefit on Under Construction
Flats or Apartments. If you are Planning to Buy Under Construction Flat in
Thane or around Thane. We have Various Under Construction Property in and
around Thane.
Squarefeet Group have various Under-Construction
Property at Thane, Mumbra, New Bhiwandi and Ambarnath.
To Know More Contact Us
@ +(91)-22-25452903, 66543333
