A big outlay for Indian homeowners is property tax. Recent events have brought several relief projects meant to light this burden. The present options for property tax relief are thoroughly referenced here:
1. Tax Relief Pertaining to Multiple Self-Occupied Properties
Homeowners could only designate one property as self-occupied; extra properties were seen as generating notional rental income and were liable to taxes. Removing the tax on declared rental income for the second property, the latest budget lets people claim up to two properties as self-occupied. This change reduces the tax liability for those who own several houses.
2. Let-Out Property Deductible Standard
Renting-out properties have a standard deduction of thirty percent on the nett annual value under Section 24 of the Income Tax Act. Independent of the actual expenditure, this deduction covers maintenance and repair expenses. The deduction from the yearly value paid in municipal taxes during that year lowers taxable income even more.
3. Interest Deductible from Home Loans
Those with a mortgage stand to gain from interest paid deductions:
- Section 24(b) lets one seek a deduction of up to ₹2 lakh annually.
- Claiming interest deduction on loan for leased properties has no upper limit.
These clauses reduce the effective cost of home loans, so increasing their affordability.
4. Main Repayment Benefits of a Home Loan Tax Advantage
Under Section 80C of the Income Tax Act, the main repayment of a home loan qualifies for a deduction of up to ₹1.5 lakh yearly. Both let-out and self-occupied houses have this benefit in encouraging real estate investment.
5. Rebates for Property Taxes
By means of property tax paid to local municipal authorities, the gross annual value of the property can be lowered while computing taxes. Since this deduction only applies in the year the tax is actually paid, it underlines the need for timely payments.
6. Benefits for Seniors
Usually ranging from 10% to 30%, some towns grant senior citizens property tax rebates. Usually accompanied with eligibility requirements, these rebates feature:
- Age restrictions often set at 60 or 65 years.
- The need that the property be occupied personally.
To benefit from these advantages, senior citizens have to apply, proving their age and property ownership at their local municipal office.
Final Thoughts
Keeping current with property tax relief programmes can help homeowners save rather a lot. See a tax professional to ensure compliance with current rules and maximise possible relief, so helping to fully appreciate and apply these benefits.
