Tax benefits is provided by the government of India to encourage more and more people to buy their own home, Tax benefits is applied in both principal and interest amount. According to sections 80C an individual can claim deduction of up to 1.5 lakh of income tax act,1961 in a financial year.
Tax benefits or income tax deductions shall apply in case of completed house, if the property is in under development or under constructions. You can not claim income tax deductions in under constructions.
Advice: If you are planning to take a home loan for purchasing a house/home. In this conditions I will suggest you that do not buy a house/home, which is under constructions. In under constructions property you can not get any type of deductions.
If you really want to purchase a own house then I will suggest you to purchase a well complete house and you will safe your more money by availing/taking deduction of RS. 1.5LACK/2LACK according to the conditions of income tax Act.
Every person have a dream to a luxury own house in their name. And purchasing a house is a big challenge in present time and it involve big investment of your life. You can realise your dreams by taking a home loan.
And pay a minimum EMI according to your monthly revenue/income, and enjoy with your family. Then you are live your life with full of fun and enjoyment.
Land is an appreciating assets and its value grow day by day. And land prices high over the 5 years, In present time rent expenses are more expensive, purchasing home/house can get you rental income and step by step you can grow your money and monthly income.
I SUGGEST: If you purchase a house of RS.30lack including all expenses. Then you hand over by making a rental agreement, If you charge minimum RS.8000(if your home is in cities) from such rental person.
Then you paid all your home loan money in 30YEARS(approx.) without paying any money form your own pocket. It is beneficial for your old age.
IF you are well minded person, then you will better utilize your money in productive works. And earn huge money.(it is the own thinking of fundmaker.in).
By taking a home loan a greater creditability is available to you . It means, greater amount is in your hand and you can invest in a appreciating assets. Which give you more profits in future.
Loan are available to you and you can invest in a complete assets and take the advantage of deductions RS.1.5LACK/2LACK, according to section 80C of the income tax Act,1961.
Purchasing/Buying a home is a critical and long-term decision. Loan is over 10 or 20 year period; The interest that you pay on principal amount may change or up and down according to period. It is sure that you will benefit from falling rates according to the situation and condition of your loan period.
Before 1990 the bank charge 18% or above interest on home loan. In present time the interest rate in about 8.5% or more/less, this will help you in appreciating your capital. And it is benefited for you.
The best option to manage your loan costs is by managing your home loan amount! Some Banks and home-loan lenders some discount or charge low rate of interest from now borrowers much better than exiting borrowers.
Suggestion: If you are a new borrower and taking a loan first time. In this situation you can take a loan from banks and money- lender in much better rate. And will get double profits:
1.As a new borrower and get exclusive offers from financial industry.
2. According to section 80C you will avail deduction of up to RS. 1.5LACK/2LACK ,condition prescribed in income tax Act, 1961.
Home loan is a loan given/disbursed by a bank to an individual specifically for purchasing a new or old home. Home loan are disbursed for both types of property as new property or old property. The point is that the title of the property is wholly of the banks or financial institutions (lender) until the full amount of loan along with interest will not paid.
Home loan is basically a long term borrowing. It will be sanctioned to an individual according to his living status. Its tenure will be minimum of 5 years and a maximum of 30 years. The period/tenure offered to you by considering other factors.
First of all the banks or financial institutions determines your payment capacity. And then they consider the following factors:
1.Income/revenue level of the applicant.
2.Age of the applicant.
3.Qualification (stability and occupation continuity).
4.Resident status (maximum limit for an Indian resident differs from that of a non-resident).
5.Income of spouse (household income is taken into account when there is a co-applicant).
6.No. of dependants (it is a measure of repayment capacity).
7.Credit history and score (past repayment track record).
8.Status of existing loans.