<\/span><\/h3>\nIf a property is sold, the seller may have to pay capital gains tax depending on the holding period:<\/p>\n
Short-Term Capital Gains (STCG):<\/strong>
\n<\/strong><\/p>\n\n- If the property is sold within two years of purchase, the gains are taxed as per the individual’s income tax slab.<\/li>\n<\/ul>\n
Long-Term Capital Gains (LTCG):<\/strong>
\n<\/strong><\/p>\n\n- If the property is held for more than two years, the gains are taxed at 20% with indexation benefits.<\/li>\n
- LTCG can be reduced by reinvesting the gains in another residential property (under Section 54) or investing in specified bonds (under Section 54EC).<\/li>\n<\/ul>\n
<\/span>Tax Benefits for Joint Owners<\/strong><\/span><\/h3>\nIn case of a joint purchase of a property, both owners can claim tax benefits on an individual basis. This way, the deductions can be maximized; more so for home loan repayments. The applicable conditions for the same are:<\/p>\n
\n- The property must be registered in both names.<\/li>\n
- Both owners should contribute to loan repayment.<\/li>\n
- Each co-owner can claim deductions under Sections 80C and 24b separately.<\/li>\n<\/ul>\n
<\/span>Rental Income and Tax Implications<\/strong><\/span><\/h3>\nIf the purchased property is rented out, the rental income is considered taxable. However, homeowners can claim deductions on expenses related to property maintenance, home loan interest, and municipal taxes. Proper tax planning can ensure that homeowners make the most of these deductions.<\/p>\n
<\/span>Government Schemes and Benefits<\/strong><\/span><\/h3>\nThe government promotes homeownership through various schemes that provide tax relief and financial assistance:<\/p>\n
\n- Pradhan Mantri Awas Yojana (PMAY):<\/strong>Offers subsidies on home loans for first-time buyers.<\/li>\n
- Affordable Housing Benefits:<\/strong>Reduced GST rates and additional deductions for affordable housing projects.<\/li>\n<\/ul>\n
<\/span>Conclusion<\/strong><\/span><\/h2>\nTax planning is an important aspect for buying residential property. Understanding the tax benefits, deductions, and liabilities is an effective way to make financially sound decisions. Add to that, as buyers, one can also leverage the benefits of home loan deductions, stamp duty benefits, and capital gains exemptions that reduce the tax burden significantly.<\/p>\n","protected":false},"excerpt":{"rendered":"
Buying residential property, for many is a decision of a lifetime. No wonder it is also a decision that requires careful planning. It is a given that most of us would scout a residential property based on the location, budget, and amenities. However, tax planning is an equally important factor that cannot be given a…<\/p>\n","protected":false},"author":1,"featured_media":5921,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[506],"tags":[],"class_list":["post-5920","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-residential-properties"],"_links":{"self":[{"href":"https:\/\/www.jainoncor.com\/blog\/wp-json\/wp\/v2\/posts\/5920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jainoncor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jainoncor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jainoncor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jainoncor.com\/blog\/wp-json\/wp\/v2\/comments?post=5920"}],"version-history":[{"count":2,"href":"https:\/\/www.jainoncor.com\/blog\/wp-json\/wp\/v2\/posts\/5920\/revisions"}],"predecessor-version":[{"id":5923,"href":"https:\/\/www.jainoncor.com\/blog\/wp-json\/wp\/v2\/posts\/5920\/revisions\/5923"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jainoncor.com\/blog\/wp-json\/wp\/v2\/media\/5921"}],"wp:attachment":[{"href":"https:\/\/www.jainoncor.com\/blog\/wp-json\/wp\/v2\/media?parent=5920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jainoncor.com\/blog\/wp-json\/wp\/v2\/categories?post=5920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jainoncor.com\/blog\/wp-json\/wp\/v2\/tags?post=5920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}