Acquiring a new home is a big financial decision and a long-term commitment. Need help with some answers?
We’re here to clear your doubts.
A : Like incomes from salary, business profits, and profession, income from house property is taxable and added to the total income.
A : Income from house property is computed on the basis of annual value of the property. Annual value as distinguished from rental value is calculated based on inherent capacity of the house property to earn income. Inherent capacity denotes the amount for which the property might be reasonably let out. This will be higher of rent paid by the tenant or annual rate value fixed by municipality, or the rent of similar property in the locality etc.
A:No, when a house property is self occupied the annual value of such property is taken as nil and as such no income tax is payable. In fact you shall be eligible for deductions such as interest on loan taken for purcahse of property etc. from your total income.
However, if you happen to be owner of more than one house property for own residential purposes, then only one house can be treated as self occupied and the annual value of such property be taken as nil, all other houses shall be deemed to be let out and annual value shall be computed accordingly.
A:Interest payable (whether paid or not) on loan for purchase, construction or reconstruction of house property is allowed as a deduction ( from total income) up to Rs.200000/- PA.
Most financial institutions would take into account the following criteria:
Salaried / self employed personnel Indian citizen / NRIs
Home loans can broadly be classified in to the following:
This is the basic loan required at the time of purchase of a home.
This is given in the context of renovation or repair works of the existing home.
This loan is given for the construction of the house.
This is given for further extension of expansion of a already existing home.
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