How to claim tax exemption on Loan Principal and Interest?

We all plan to purchase properties when we are financially sound to pay the home loan EMI. However, not many of us are aware of the tax benefits that we can claim out of the home loan that we apply for while we buy a property. In our previous posts we have discussed about how you can claim HRA and tax benefits if you have a home loan for the property you have just purchased.

Naiknavare Developers

Today we are going to understand how you can claim tax exemption on loan principal and interest.

When it comes to tax breaks on the applied home loan, you are eligible to claim tax benefits only for the principal of the loan amount before the completion of your house. On the completion of your house, you are then eligible to claim tax benefits on the total interest paid till the date of completion of the house. In case where the house is let out, the entire interest paid on home loan can be deducted.

Tax Exemption on Loan Principal and Interest

The interest that is paid on a home loan is not deducted directly from the salary income for home loan. The calculation of income from house property is done for each house that the individual owns. A self employed person is eligible to avail tax benefit for the rent that he pays for his residence and can claim the deduction under section 80GG of Income Tax Act. Here, no HRA exemption is available in case of a self employed individual.

A tax payer can avail the following tax benefits on home loans:

1. If you have applied for a home loan and you want to repay the principal amount on home loan, then the principal amount will be deducted from gross total income. In case the house is let out, the deduction for the entire interest paid on home loan is available.
2. Tax benefit on interest payment. 
3. Additionally, interest paid on home loan during the pre-construction period, i.e., period prior to the financial year in which house is purchased or constructed can also be claimed as deduction. 

We shall discuss about how you can claim both, the HRA and the home loan tax benefits together in our upcoming post. Till then stay tuned!

Read More:

1. HRA and Tax Benefits from Home Loans?
2. Confused how home loans can get you Tax benefits?
3. Homes that are well connected!

Modern techniques and standards followed by Naiknavare developers

Quality work has been synonymous with the Naiknavare developer brand in Pune. With a team of experienced professionals and smart minds at work the group has indeed delivered many world class projects in the region that withstood many seasonal changes. Ever wondered what kind of technology went into construction of these amazing works undertaken by the group? The group primarily uses 3 types technology that has been well researched and trusted by experts.

Alu form technology 

• Aluform – Well known an Aluminium Formwork System is a concreting system followed by the group. This process is also regarded as the most versatile modern construction system. In fact, Naiknavare Developers has been one of the few real estate companies in India to have extensively researched and used one hundred percent indigenized Aluminium-form technology. This enables a process which is lighter in weight, efficient and is flexible. The process also eliminates situations like messy brickwork, concrete leakage and the use of conventional, polluting construction equipment.

• Plaswall - The Plaswall system is said to be a simple, fast and economical pre-engineered and pre-fabricated modular load-bearing construction system. The technology features a range of custom-manufactured modular walls assembled in a mobile factory on site and is compatible with any design or architectural requirement. The technology can be used right from thermally insulated walls that have been specially designed for hot and cold climates right to lightweight concrete internal wall systems.



Plaswall

• Cellular Lightweight Concrete Block - Cellular Lightweight Concrete (CLC) is considered to be one of the recent emerging techniques in making concrete. ‘Fly ash’, an industrial waste product cannot be easily disposed. The new technology solves the problem of disposal of ‘fly ash’ and at the same time it helps in reducing the cost of the construction. Therefore, fly ash based CLC is considered as environment friendly sustainable material produced with least energy demand. The density is said to be considerably reduced by using ‘fly ash’, as it is cellular lightweight concrete based which is normal concrete and at the same time, the strength is not affected by appropriate design mix. Manufacturing process of CLC is similar to normal concrete and in this additionally foam generating machine is used.

Naiknavare Developers Brings You Closer to Nature with Dwarka Project

Naiknavare Developers has been a strong name behind major projects in Pune region. Developing commercial spaces, and building homes, schools and hospitals that can withstand the test of time is a natural trait from this developer. Naiknavare Developers made its debut in the city way back in 1986 with a project in Tulshibagwale Colony. Since then there has been no looking back for the group and it has been delivering some of the most magnificent projects in Pune region.

Looking for a 2 BHK or 1 BHK flats in Chakan? Look no further as the Dwarka project by Naiknavare Group offers some of the best 2 BHK or 1 BHK flats in Chakan. The Dwarka project from the group spreads over 130 acres in Chakan. Unlike other residential projects in Pune the Dwarka project from Naiknavare Group is based on Bharat pattern – a township for people from different strata of the society. The city of Pune has emerged as a strong city for education, business and IT sector in India, and hence investors for projects in Pune can expect good gains in long time.

Speaking more about this Dwarka project in Pune, it has received MoEF clearance for environment friendly development. The internal roads are adorned with plantation and has ample parking space for visitors too. Moreover unlike other projects in Pune, this Dwarka Project by Naiknavare Group has received about 6 acres of central forest garden that also has dedicated play area for kids and senior citizens. The complex also has, 'State of the Art' Sewage Treatment Plant that enables water recycling that can be reused for gardening and washing. The complex shall also have a shopping complex that shall feature convenience stores and eateries. Furthermore, the electrical power substation ensures sufficient power supply in case of an emergency.

The 1 BHK flats in Chakan at Dwarka are also equally mesmerizing as does with its 2 BHK flats. Some of the other projects in Pune do not follow sector wise development like the Dwarka project that facilitates easy management and brings about a good urban environment. The complex also offers specialty sports complex that lets active users spend time within the complex. Stepping back to history, Pune has been a strong political center in the Indian subcontinent since the era of Maratha Empire when the Peshwas ruled the place. Investing in projects in Pune can also prove to be a good deal owing to its proximity to country’s financial capital Mumbai.

Reasons Why Builders & Buyers in Pune are Hopping Mad Over Locations

We all know that builders in Pune are going that extra mile (literally) to ensure best locations for their residential projects. The fringe areas of Pune are a testimony to the fact that builders are looking for unconventional locations which have the potential to develop into mainstream neighbourhoods. Likewise skyrocketing prices of the saturated main areas in the city like Kothrud, Camp, Prabhat Road, etc prove how important the location is. The prices of properties are determined by locations. Well, that was one reason why location is so important! Here a low down on a few other reasons.

Tells you about the People 

The name of the location itself gives you an idea about what kind of a neighborhood it is going to be – upper class, middle class, lower economic class etc. This is a huge factor when it comes to developer wanting to attract people and people looking for apartments in Pune.  

Safety 

Location is important for builders in Pune alike and buyers alike from the perspective of safety. The location of the project tells you how safe that area is going to be.

Connectivity 

Location is a crucial aspect for first time home buyer from the point of view of connectivity with major areas in the city. That is especially when the property in Pune is in the outskirts of the city. Additionally, things required daily or in emergency situations like medical care have to be within walking distance. If that is not the case, the property may not be bought. So builders in Pune would not generally take a risk in an absolutely non-descript location! 

Resale and Appreciation

It may not very well happen that you would stay in a single place for your lifetime. You would most probably change your place. If it is a well developed location or developing location, the property will definitely fetch a good resale value and appreciation. 

Taking care of all these aspects while conceiving a real estate project is Naiknavare Developers Pvt. Ltd. (www.naiknavare.com) with almost 3 decades of experience in real estate, this ranks among the most well known and trusted real estate builders in Pune.