123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Top Four Legal Benefits For First Time Home Buyers In India

By Author: pooja agrawal
Total Articles: 84
Comment this article

Owning a house is the dream of every hardworking Indian individual. Having your own house enables a sense of financial soundness and security. It also uplifts the social status of an individual. Most of the Indian individuals today prefer having their own house. Having your own house ensures an individual with a sense of financial achievement.
Nowadays, Indian individuals prefer to buy their own house rather than living in a rental house. The desire for buying a new house has increased in Indian. Considering this increasing desire for buying a house, the Government of India has come up with legal benefits for the first home buyers to support them. First time home buyers, especially, those who come under the low-income group and middle-income group often face difficulties in financing their dream home. Even in cases where they get approved for a home loan, repayment of the same becomes difficult. Considering all these facts, the Government has provided some benefits to the first time home buyer. These benefits include the Pradhan Mantri Awas Yojana (PMAY), Section 80C, Section 80EE and Section 24. These sections offer relief to first-time homebuyers on the payable interest on the home loan.
1. Pradhan Mantri Awas Yojana (PMAY)
Pradhan Mantri Awas Yojana (PMAY) was started on 31st December 2015, with the aim of providing a residential house to every Indian citizen, It’s slogan states “Housing for All”. Under this scheme, it gives first-time homebuyers subsidy for making home buying easy. This makes it more affordable for lower & middle-class people to own their dream home. The subsidy is provided at different rates depending on the income of the people. A person having income up to 18 lakhs rupees can avail of this subsidy.

2. Section 80C
Under this section, the first time home buyer gets the benefit of tax clam, which can extend up to 1.5 lakh rupees on the repayment of the principal amount bought for a home loan. It reduces the tax charged on the principal amount during the time of repayment. An individual gets liberty from paying tax on the amount borrowed for home buying.

3. Section 24
Under this section, tax benefit up to 2 lakh rupees can be availed on the repayment of interest of a home loan. This is only applicable to properties that are individually owned. If one is renting the property, there is no maximum limit on the amount to claim a tax deduction. An individual can claim the entire interest amount or can even claim an amount exceeds 2 lakh rupees.

4. Section 80EE
Under section 80EE, a first time home buyer can avail of a tax deduction of 50,000 rupees as a tax benefit on the interest repayment.

The introduction of these four legal benefits contributes to rapid improvements in the infrastructural developments of India. These legal benefits make the purchase of a first home more eligible and it also makes housing affordable for the common masses in India.

Total Views: 21Word Count: 484See All articles From Author

Add Comment

Investing / Finance Articles

1. How Credit Repair Companies In Michigan Help To Improve Credit Score In 30 Days?
Author: Martin King

2. Playing The Gamble Called Investment
Author: Avendus

3. Stock Market Evaluation: Not Out Of Emotions
Author: Priyanka Paul

4. Algorithmic Trading In India: History, Regulations, Platforms And Future
Author: Viraj Quant

5. How To Select Mutual Funds And Invest In Sip
Author: Shashank Pawar

6. Puraniks City Reserva - A Home Design For Your Needs
Author: pooja agrawal

7. Sot Cash Against Credit Card In Chennai
Author: Cashpoint

8. Get Mortgage Even With Bad Credit –
Author: Ethan Charlotte

9. Money Management Tips - For Small Business In Australia
Author: John Mike

10. All You Need To Know About The Personal Loan Interest Rates
Author: Loan Adda

11. Why Using Self-directed Ira To Buy Real Estate Is A Smart Idea?
Author: Hayley Barnes

12. Best Platform For Automated Trading
Author: Jack Hamilton

13. Is Online Gambling Legal In Oregon - Answers
Author: Georgetta Henn

14. What To Do When The Business Loan Is Refused
Author: Finway Capital

15. Types Of Business And Their Loan Requirement
Author: Finway Capital

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: