Tax Benefits of Buying Under Construction Property: Key Insights You Should Know

One of the considerations when buying a home from property developers in Coimbatore is the construction timeline. At JRD Realtors, we understand you don’t want to wait too long before moving in or renting it out. If you’re still unsure whether to buy a home that’s still under construction, you might be motivated to decide now when you learn that there are tax benefits to it.

Many under-construction properties are priced at discounted rates, usually 15-20% lower than when ready-to-move-in homes. In this blog, we will share the tax benefits you can get from buying under-construction properties.

Who can benefit from under-construction properties?

If you’re buying a home from property developers in Coimbatore, it’s worth looking at under-construction projects to reduce your budget. This can be practical if you don’t plan to move in soon and want to save money. Likewise, it could benefit you as a salaried individual getting a home loan. Once you possess the home, you can claim the under-construction property tax benefit per Sections 24B, 80EEA, and 80C of the Income Tax Act 1961.

Navigating the tax benefits of under-construction properties

There are 4 key sections in the IT Act 1961 that you should know when understanding the tax benefits you can get from buying an under-construction home.

• Section 24B: You could get up to Rs.2 Lakh for every financial year, and the amount can be reduced from your home loan’s interest.
• Section 80C: You could get a tax benefit of up to Rs1.5 Lakh and claim it against the principal amount of a paid home loan.
• Section 80EE: As a taxpayer, you could claim an additional RS.50,000 tax deduction on their home loan interest when paid after exhausting the Section 24B limit.
• Section 80EEA: Taxpayers could claim an extra RS.1,50,0000 tax deduction on their home loan interest paid once Section 80C has been exhausted.

All under-construction homes from property developers in Coimbatore may qualify for tax benefits as long as they fulfil certain terms and conditions. Not sure if you’re qualified? Contact us!

At JRD Realtorss, our experts will help you navigate under-construction properties that could bring tax benefits and savings down the road. Call +91 81899-99999 or +91 60339 33333. You can also learn more about our properties by downloading our mobile app.