Happy-New-Year-Wishes-by-Language.avi

Tax Benefits on Home Loan

When a Home Loan is availed, borrower has certain Tax Benefits on both Principal and Interest paid.

Principal Paid:  Under Section 80C of the Income Tax Act, a borrower can claim a deduction of Rs.1.00 lakh on the principal amount repaid during a year.

Interest Paid: Under Section 24(b) of the Income Tax Act 1961, a borrower can claim a deduction of Rs.1.50 lakhs on the interest paid on a home loan during a year.  This benefit is available for purchase of a Home/apartment/construction/re-construction/renovation.

In case of flats or house under construction, payments are released by Banks in stages.  In such cases, the tax benefit is not applicable as above.  Under Section 24(b) of the Income Tax Act, the borrower can claim a deduction for interest paid after the construction is completed in 5 equal instalments upto Rs.1.50 lakhs during a year.

PURCHASE OF PROPERTY IN JOINT NAMES:

All the property owners can claim tax benefits proportionately based on the ownership of the property.

MORE THAN 1 HOME LOAN:

Under Section 80C and Section 24(b) of the Income Tax Act, the same limit is applicable irrespective of the number of homes.  If the property is let out, there is no limit on deduction of the interest paid for that particular loan. In fact, the benefits are better on a second property.  If the first property is self-occupied and the second property is let-out, the entire interest paid on the loan can be deducted from the taxable income.  Further, 30% of the rent received is exempted from tax as Standard Deduction to meet repairs and maintenance of this particular property.  Further, taxes paid to municipality and property tax is also eligible for deduction.  Rent received from this particular property is taxable.

LOAN FROM OTHERS:  Tax benefits on Home Loans are eligible for Interest paid only, even if you have borrowed from relatives or close circles, whereas this benefit is not applicable for principal re-paid.

PLOT LOANS:  Tax benefits are eligible for a house/flat either completed or under construction. But there is no tax benefit for purchase of a Plot.

Budget House Current Economic Scenario

The current economic scenario may have forced developers to switch over to affordable homes to attract buyers, but prohibitive land prices and rise in other input costs have raised doubts on whether the demand for budget and affordable homes could be met at all.

According to a survey by online data and analytics search firm Prop Equity, there is a deficit of 95 per cent in the Rs 10-20 lakh home price range while the deficit is 65 per cent in the Rs 20-40 lakh budget segment in India's five major metropolitan cities.

According to the Eleventh Five Year Plan the fastest growing value bracket is between Rs 10-25 lakh. But in today's context there are clearly no houses in this bracket available in a city like Mumbai.

"While the concept of affordable housing seems to be the obvious answer to the current demand-supply gap, its execution remains complicated due to the unclear policy framework," said Samir Jasuja, founder & chief executive officer (CEO), Prop Equity, in a recent report on affordable housing.

"To make affordable housing a success in India, the government will need to incentive the development community through cheaper land acquisition, awarding higher floor space index, timely regulatory approvals, infrastructure development, easier home loans and interest rate subsidies to motivate them to participate actively and aggressively in this segment," he added.

At a recent realty summit held by the Federation of Indian Chambers of Commerce and Industry (Ficci), experts had concurred with the view. But the much-hyped affordable segment of housing seems to be plagued with either being unaffordable or unfeasible.

In September, Prop Equity had released a study on the growing gap between demand and supply in the affordable residential sector after analyzing over 6,000 projects being executed by over 2,500 developers across Mumbai Metropolitan Region (Mumbai, Thane), National Capital Region (Delhi, Gurgaon, Noida, Ghaziabad and Faridabad), Bangalore, Chennai and Hyderabad. There is a demand for over 26.53 million houses in the budget and affordable housing segment across various socio-economic segments. And approximately 99 per cent of this demand comes from the economically weaker sections, low income group and middle income group segments.

Buying a house? Here's how to steer clear of land troubles

The gap between supply and demand can be attributed to the low interest from private developers to launch budget homes due to low margins, PropEquity said. "MMR and NCR have portrayed the maximum deficit ranging between 90 per cent - 95 per cent," it added.

Meanwhile, the uncertainty bogging the global economy has also clouded the realty sector. A report by real estate consultancy DTZ says the available capital for global real estate investment has dropped by four per cent in 2012 to $316 billion from $329 billion in 2010, the first reversal of growth since 2009.

"In India at a cumulative level, FDI in real estate has attracted close to $10.7 billion over the past decade. However, over the past two to three years, the level of inflows has been declining because of overall perception of the industry taking a beating, land acquisition skirmishes and rising input prices, thereby dampening the investor mood," said Anshul Jain, CEO, DTZ India.

Courtesy: Mail Today

Housing Loan Consultant

Have you planned your dream house and looking for housing loan, The housing loan consultant will arrange home loans from banks at best interest rate. You will find many features and benefits with consultant that will save you money and help protect your investment for your family. Our loan agents can help you in finding the best bank for home loan that suits your requirements. Housing loan consultant have good relation with all home loan providing banks, so that they can easily arrange home loans faster and at lesser documents.
And the most important point you should know about each and every term related with home loans before applying. So it is always advisable to consult a home loan expert before applying for a home loan or purchasing a property. We have seperate team for home loan which gives needed information on interest rates and documents.

Type of home loans:
Home purchase loan
Home improvement loan
Home extension loan
Home conversion loan
Bridge loan
Home construction loan
Land purchase loan

Housing loan consultant also provide mortgage loans with less documentation and at high speed. If you are looking for a mortgage loan agent in Chennai, then your first thought must be home loan consultant. They respect your privacy. Your information will never be sold out. They simply need your information to understand how they can better serve you.

Documents that needed For any kind of loan.
Last Six month Bank statement
Pan Card Detail No
Form 16 no for last 2 years
Last three months salary slip if u are employee
Address proof
If you are not Employee two Guarantor