With the changing trends of the people of Kerala, real estate builders have categorized their apartment and villa projects into budget, luxury, and premium classes according to the level of features offered. The range of
Kerala apartments and flats offered to the prospective buyer is very high.
The government of India has played a pivotal role in the development of realty sector. It has aided by providing income tax benefits to the apartment owners and a number of benefits to realty developers likewise.
As per Section 24 of the Income Tax Act, interest paid on capital borrowed for the acquisition, construction, repair, renewal or reconstruction of property is entitled to a deduction. That means you are allowed to deduct an amount equivalent to the total interest payable on the housing loan from your taxable income within the same financial year. Presently, the limit stands at Rs 1.5 lakh and this is a substantial amount.
That brings us to Section 88 of the Income Tax Act. You get a 20% rebate on repayment of principal during a financial year. The principal repayment eligible for rebate currently is Rs 20,000. Stamp duty, registration fee or other such expenses paid for the purpose of transfer of such house property to the customer is also considered under this amount.
Customers have two options for making payments towards an apartment. Self finance the purchase or take a bank loan. In the case of bank financing your purchase there are a number of feasible options and the assistance of the financial advisors can be availed.
