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Homebuyers: Are You Missing These Tax Deductions?
25 Nov
Summary
- First-time buyers often miss ₹50,000 deduction under Section 80EE.
- Joint loans can effectively double tax benefits for co-owners.
- Pre-construction interest is claimable in five equal instalments.
Homebuyers frequently miss out on substantial tax savings by relying solely on common deductions. Lesser-known provisions, such as the additional ₹50,000 available under Section 80EE for first-time buyers, often go unclaimed due to a lack of awareness regarding eligibility criteria.
Tax benefits can be amplified through joint home loans, where co-owners who also co-own the property and share EMI payments can each claim full deductions independently. Furthermore, interest paid during the pre-construction period is a frequently overlooked opportunity, claimable in five equal instalments after property completion, offering significant cumulative tax advantages.
Understanding the distinction between old and new tax regimes is also crucial, as Section 80C benefits are exclusive to the old regime, while Section 24(b) applies to let-out properties under both. Optimizing tax savings through a structured approach, complete documentation, and early evaluation is vital for affordability, especially with rising interest rates and household costs.
