First-Time Homebuyers’ Benefits
First-Time Homebuyers’ Benefits- We would go into detail about the advantages of investing in your first property in this guide.
The government of India provides first-time homebuyers with a number of incentives in an effort to provide housing for all of its citizens. We would go into detail about the advantages of investing in your first property in this guide.
Are you searching new projects in dadar?
First-time homebuyer housing schemes
Pradhan Mantri Awas Yojana
The Pradhan Mantri Awas Yojana was introduce by the government in June 2015 with the goal of housing everyone in the nation. Through its Credit-Linked Subsidy Scheme and Beneficiary-led Construction Scheme, the central scheme offers first-time homebuyers financial assistance for the construction of homes.
The government offers first-time homebuyers a subsidy on a home loan between Rs 6 Lakh & Rs 12 Lakh at a reduced interest rate for the building of new homes under the Credit-Linked Subsidy Scheme. This benefit also extends to homeowners who are remodelling their current homes.
Beneficiary categories of the Pradhan Mantri Awas Yojana
The PMAY list categorizes its beneficiaries into four groups according to the household’s yearly income.
| Beneficiary | Annual income of the household |
| Middle Income Group-1 (MIG-1) | Rs 6 Lakh to Rs 12 Lakh |
| Lower Income Group (LIG) | Rs 3 Lakh to Rs 6 Lakh |
| Middle Income Group-2 (MIG-2) | Rs 12 Lakh to Rs 18 Lakh |
| Economically Weaker Section (EWS) | Up to Rs 3 Lakh |
A new home can be built by first-time EWS homeowners with central help of Rs 1,50,000 under the beneficiary-led individual house construction/enhancements initiative.
Housing programmes run by the government for first-time homebuyers
The primary requirement for granting housing under most state-run housing programmes is that the applicant cannot already be the owner of a home. This indicates that the target audience for these housing programmes is India’s first-time homebuyers. The DDA, MHADA, YEIDA, Noida Authority, Ghaziabad Development Authority, Gurgaon Development Authority, Chennai Development Authority, Bangalore Development Authority, Kolkata Development Authority, and so on are some of the housing schemes that they have introduced.
Advantages for first-time homebuyers with taxes
In addition to the refunds provided to a regular borrower, first-time homebuyers also benefit from tax breaks.
Section 80C
Under Section 80C, home loan borrowers are eligible to deduct up to Rs 1.50 Lakh from their annual principle repayment. The payment of interest on a home loan is exempt from this provision, nevertheless. To be eligible for this benefit, you must lock in for five years. This implies that all of your prior claim deductions will be added back to your income in the year of sale if you sell the property within five years of the date of possession.
First-time purchasers who pay stamp duty & registration fees at the time of purchasing a property are also eligible for this reduction. Only the year that the actual payment for these costs is made is eligible for this deduction. This deduction can be claim on an individual’s income tax return as well as a HUF’s.
Section 24B
Interest on house loans is eligible for a Section 24B deduction. Deductions of different amounts are offers in this section according to the kind of property and how it is use.
Rs 2 Lakh annually: If the property is self-occupied, borrowers may be eligible for a tax deduction under section 24B of the Income Tax legislation of up to Rs 2 Lakh annually. Additional requirements state that the house loan must be taken out on or after April 1, 1999. The house must be built or purchased within five years of applying for the loan.
Rs 30,000 annually: If the loan has been taken out for repairs and renovations, the borrower may deduct just Rs 30,000 from their taxes in lieu of interest payments. Additionally, under the following conditions, the deduction for house loan interest will be capped at Rs 30,000:
- If the loan is approve for the purpose of purchasing or building a property before April 1, 1999.
- If the house’s construction is not finishes within five years of the preceding year’s end and the loan is approve on April 1, 1999, or later.
Whole interest paid in a year: For rental properties, the full amount of interest paid on a house loan for a given year may be deducted. This regulation is relevant regardless of whether the loan is being use for home building, home renovation, home buying, or home repair.
Benefit from taxes under Section 80-EEA
First-time homeowners are eligible for a Rs 1.50 lakh tax deduction on their home loan interest payments under Section 80-EEA.
The residence must also fulfil the carpet area restriction and price cap in order to be eligible for the benefit under this provision. In order to qualify for Section 80-EEA benefits, the property’s price cannot be more than Rs 45 lakh. The carpet area of a flat in a metro area shouldn’t be more than 645 square feet (sqft). In all other cities, the units’ carpet area needs to be 968 square feet. Section 80-EEA benefits are available for home loans approve between April 1, 2019, and March 31, 2022.
Benefit from taxes under Section 80-EE
An extra Rs 50,000 is deducte under Section 80-EE from the interest paid to first-time purchasers on bank-approve loans made between April 1, 2016, and March 31, 2017. “Any service fee or other charges with respect to money borrow or processing fees” is include in the definition of interest under this clause.
Please take note that HUFs, businesses, etc. are not eligible for the deductions under Section 80-EE; only individuals are. Borrowing from a bank is require; personal sources are not acceptable. It can be claim up until the debt is entirely return, though. Be aware that Section 80-EE was a one-time refund that was reintroduce as Section 80-EEA for the 2016–17 budget. The previous version is therefore no longer relevant.
You’re looking for Projects in Belapur have the Best Properties In Navi Mumbai Like Ready to Move:https://navimumbaihouses.com/properties/search/belapur/
If you want daily property update details please follow us on Facebook Page / YouTube Channel / Twitter
