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.

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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!

Apartments in Viman Nagar – Buying Tranquil Spaces

For those who wish to live a grand life, same is their expectation about their homes. From various projects in Pune, apartments in Viman Nagar offers modern style and comfort that makes one's dream come true.

Projects in Pune: Where to expect grandeur?

An evolved life is full of indulgences and that is exactly what certain projects in Pune are about. Out of various projects in Pune, Mystique Moods offers apartments in Viman Nagar, with the ambience reflecting the feeling of grandeur. Viman Nagar is chosen by the reputed builders who build spaces away from the chaotic places for the choosy few. From the building technology to the architecture, everything has changed and that is the best thing which has happened to the real estate industry. For example, if you observe the walls of some old or even new buildings, you may notice wet walls, few damages to the paint plaster, just because of water leakages. Here is how you get to notice difference of work between the reputed and ordinary builder. A reputed builder incorporates the latest technology ensuring perfection in the project.

Property in Viman Nagar Pune that will accentuate your Stylish Living 


Viman Nagar is one of the best choices for Punites, where they would like to settle down and relax in the peaceful locality after a busy day. And surprisingly, the best of the projects in Pune are always planned in this area which makes life a celebration. Mystique Moods is one of such apartments in Viman nagar that offers a serene environment away from the hotchpotch mode of Pune city.

Naiknavare builders have been building spaces that reflects the elegant taste of the proud apartment owners. Projects in Pune, which are built with care and passion, are the one's chosen by today's buyer and maybe that is why the best ones are always sold out fast. 

Properties in Chakan: The Hub of Growth and Opportunities

Pune is considered as one of the top destinations for real estate in India. Pune has areas like Chakan that are growing at an astonishing speed. Properties in Chakan have gained a lot of traction in Pune off late. 

Renowned builders are exploring areas like Chakan and making them buzzing and lively localities.

Facts about Chakan: The rising Neighbourhood of Pune

Chakan is known as the Auto Hub of Pune. It is just an hour’s drive to Chakan from the main city. Chakan is also a hub for Special Economic Zone (SEZ) and Maharashtra Industrial Development Corporation (MIDC). The industrial area in and around Chakan is considered to be one of the best in the state. MIDC is a major reason for development of properties in Chakan. The area is a mixture of both basic as well as infrastructure for a classy lifestyle. The real estate growth in Pune is also due to the phenomenal growth of the auto sector in the city. World leaders in automobile sector such as Volkswagen, Daimler Chrysler, Mahindra & Mahindra and Bajaj Auto have a very strong presence in Chakan.

Dwarka, a township in Chakan: Redefining Lifestyle

Dwarka is an elite project by Naiknavare Developers Pvt. Ltd that has all the components for a superior, elegant lifestyle. It is a 130 Acre Township and is slated to have over 6000 high end residences. Dwarka at Chakan inspired by Bharat Pattern is your destination for best property investment. The project has apartments, row houses and bungalows coupled with luxurious amenities. Dwarka is a perfect blend of the Indian culture and modern amenities.

Properties in Chakan like Dwarka will definitely augur well for future growth of real estate in Chakan! 

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.