Tax Benefits of Investing in Real Estate in

Investing your wealth in real estate is one of the most common ways to create a cash flow stream. Unlike other possessions, it commonly returns better numbers.

Here are the Top Tax Benefits of Investing in Real Estate in India

Deduction in Home Loan Interest:

The Government of India exempts you from taxation for a home loan up to 2 lakh rupees. Section 24 of the Income Tax Act of 1961 states this exemption in detail and gives the benefits to the owner of the property as an exemption.

Tax Exemption on Long-Term Capital Gains:

To understand this benefit completely, you need to understand two financial terms- Capital Gains & Indexation. Capital gains are the revenue you generate by selling the property. Indexation is the method of adjusting the actual price of the property considering the effects of inflation on the property.

Deduction of Property Tax:

If you are investing your money in real estate to start a business, you can apply for a deduction of property tax. Section 37 states the exemption from property tax for business owners.

Tax Benefits for Rental Properties:

Rental properties are an asset for you. They draw a recurring monthly or annual income to you and therefore make you eligible for paying taxes on it. For example, if you have rented out a studio apartment or a home for rent, they bring you money. The government allows you to claim an exemption in taxation for various expenses. Repairing, maintenance taxes, property taxes, and insurance are some expenses. A standard claim is 30% of the new rental income to account for other expenses.