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Can anyone give me the important details that I need to know when buying property in Kochi?

Q: Hi there friend..I am really interested to buy a residential property in Kochi at least by next year. This is the first time I am buying a property, so I need some detailed information about how to buy property in Kochi. Especially, I need details about tax benefits on home loans as well as other relevant details if possible.

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Replies (17)
1
I can give you some circumstances under which you can get the tax benefits. You know, if you are living in your own house, or if your house is under construction, if your house is far-off or even if the house is on rent, one thing is that as long as the loan seeker is paying the rent, he or she can avail the tax benefits.
Smitha Ravi


2
oh...an eye opener...when i further inquired about REIT, I could understand that there you can get some very good tax benefits. I came across two popular ways for tax benefit. One was the Trust Level Tax Benefit and the unit holder level tax benefit. You can get higher profit from these methods.
Rajagopal Menon


3
why do we worry so much talking about tax benefits from such a wide angle. I am really into real estate..If you have heard about the Real Estate Investment Trust (REIT), then you can see that this can be considered an ideal investment option for the average investors for gaining profit without directly acquiring property..
Krishna gowda


4
I think that you can get tax benefits at the time of filing the income tax returns. But, suppose there is any delay in the project and the possession doesn't happen on the given date or something, then you cannot get the tax benefit for the principal and the interest.
Deepak Shetty


5
But, there are ways to avail tax benefits from an under construction property also. you know, under the section 80C, it allows the tax benefit for the amount paid towards stamp duty and registration process. anyway, tax benefit on the principal repayment wont be allowed while under construction.
 Allen George


6
This is actually a particular situation, my friend. As per section 24 of the Income Tax Act, tax deduction for payment of Interest will only be allowed from the financial year 2014 onwards. But, one thing is that interest paid on home loan before the completion of construction will be allowed as tax deduction for next 5 years at 40000 per annum from 2014 onwards.
 Allen George


7
Can I know if I purchase a house in kochi in 2012 and took loan of rs. 10 lakhs from a bank which pays interest at 10% per annum, what happens if the construction was complete only in April 2014??
Maria Nair


8
Oh..yeah..there are some other situations which are closely related to what you said, dude. One situation is that if you take the loan for the purpose of repair or renewal or reconstruction then there wont be any tax deduction for interest paid before completion. Just like that if loan is taken for the purpose of purchase or construction also starts this tax deduction once the project is completed.
Maria Nair


9
yeah...and you know, you can get even more benefits from tax in this section actually. The maximum limit of deduction is Rs. 2 lakhs. At first this was only 1.5 lakhs. but later in the Budget session last year, it was raised to 2 lakhs. But, this is for self occupied property only, okay..
Vijaykrishna Nayar


10
In Kochi, I have seen many home buyers who purchase the property on loan even before the completion of construction and then start paying EMI to the bank. In such cases, the Section 24 clearly states that there would not be any Tax deduction if you pay interest before the construction is complete.
Vijaykrishna Nayar


11
But, i think no service tax is levied on properties on which construction has been fully completed. If you transfer the house property on which you have claimed tax deduction before completing 5 years of possession, then no deduction and tax benefit on home loans can be obtained by you.
Kunal Pillai


12
Hey, I am aware of another newly inserted section, that is the tax benefit on home loans for payment of interest on home loans can also be claimed as deduction under Section 24 as well as under the new section called 80EE. Section 80 EE was inserted in the budget 2013.
Kunal Pillai


13
true..again there is another case that if you are planning to buy an under construction property, because it is priced at lower price than the fully completed property, then see that the service tax is also levied on the Under Construction Property.
Suneel Chakyar


14
oh..but, there is one thing you should know..the tax benefit of the home loans for repayment of principal part of the home loan is actually allowed only after the construction is complete. I think no deduction will be allowed for you for repayment of principal for the years when your property was being constructed.
Krishna Abhijath


15
For your information, the tax deduction is the total of the deduction that is allowed under the section 80C. In other words, you can see that this includes the amount invested in PPF Account, Tax Saving Fixed Deposit, Equity Oriented Mutual Funds, National Savings Certificate, Senior Citizens Saving Scheme etc.
Ashwini Eradi


16
for you to understand, in simple terms, the maximum tax deduction that is allowed under section 80C is rs. 1,50,000 rupees. This was increased from Rs. 1 lakh recently to 1.5 lakhs. And also, the tax deduction under the section 80C is available under the irrespective year in which the payment has been made.
Vikesh Vaidyar


17
hey there...i think I can give a brief detailing about the tax benefit on home loans in India. Actually, it is mentioned in the Section 80C of Income tax act. If you are able to pay the amount of the principal amount you took as home loan, then, you can get the benefit of tax deduction.
Arjun Sridhar


Well, Can you explain how the section 80C of income tax gets you the benefit of tax deduction??? Can I know if there is any other section that deals with this??
27th January 2015


18

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