Affordable housing remained a key area of ​​intervention, as Minister of Finance (FM) Nirmala Sitharaman, on February 1, 2021, presented the Union budget 2021-22 to Lok Sabha, aiming to revive Asia’s third-largest economy, which is grappling with the difficulties caused by the COVID-19 pandemic.

Tax benefit for first-time home buyers

If you are buying a house for the first time, you are entitled to tax benefits on the mortgage under three sections, namely section 80C, section 24 and section 80EEA of the Tax Act on income.

With the help of these provisions of the Income Tax Act, you can avail a home loan of Rs 5 lakh per year.

1. Article 80C: Under this section, you can enjoy the benefit of up to Rs. 1.5 Lakhs for mortgage principal and stamp duty provided that the property is not sold within 5 years of possession .
2. Article 24: Under this section, you can avail the benefit up to Rs. 2 Lakhs for mortgage principal and stamp duty provided that the assessed income tax or any family member long live in this house. Full interest can be claimed if the house is rented
3. Article 80 EEA: Under this section, you can qualify for the benefit of up to Rs. 1.5 Lakhs on mortgage interest on terms that the appraised should not own residential property until the loan sanction. and should not claim any amount under Section 80EE of Income Tax and the loan should be borrowed from Financial Institution only.

Fiscal advantages for second owner

If you already own a property and want to buy another one, you are not eligible for tax benefits under the 80EEA. You can apply for benefits under 80C (plus the stamp duty paid in the first year) and under section 24. However, if the purpose of the house is an investment and you wish to rent it out, in this case you can claim the full amount of interest. element of Article 24.

Tax Benefits Women Get When Investing in a Home

Typically, income tax laws do not provide specific benefits in the event that a woman invests in a house. However, some state governments have granted a stamp duty of 1-2% if a woman owns a house.

For example, in Rajasthan, if you buy a house in the amount of Rs 40 Lakhs, in general the stamp duty (including other charges) is 8.8% or Rs 3.52,000, but if a female member of the family buys this house and then she has to pay 7.5% stamp duty, or Rs 3,000,000. Thus, there is a one-time saving of Rs 52,000 if a woman buys the same house.

Tax benefits for husband-wife or joint purchase

If the husband and wife buy a house jointly, the rules for tax benefits remain the same in this case, however, both husband and wife can claim tax benefits in their individual records. Maximum deductions from benefits cannot exceed the actual amount paid, i.e. husband and wife cannot benefit from the same payment.

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