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Buyers and investors could lose 85% tax benefit on delay of house possession
Q: As we all know that a tax deduction of Rs 2 lakh per year is allowed against payment of interest on home loans, if the house is acquired within 3 yrs of taking the loan.
Yes, it is just making the buyers ineligible for the tax-deduction. It is a fact they would have known at the time of taking home loan. It is better to buy your own home than rent a property for yourself.
It is nothing but one more stress on realty sector. It is always seen that the most builders are now committing deliveries after 4 yrs of booking, so home buyers lose out on a big chunk of the potential tax deduction.
Hi Rishi, This is not fair. They are already facing mental harassment of delayed delivery for no faults of their and yet again fear of losing 85% of the tax benefit on their home loan.
Yes, in case the possession happens after 3 yrs, the permissible deduction falls to just Rs 30000 a year a reduction of 85%. But it is seen that the past couple of years most of the home deliveries have been delayed beyond 3 yrs. from time of purchase. it means they all will lose the tax deduction benefit.