Tax Benefits of Owning an Apartment in Trivandrum
DATE: 13:12:2024Tax Benefits of Owning an Apartment in Trivandrum
Investing in real estate has long been considered a sound financial decision, especially in a growing city like Trivandrum. As the capital of Kerala, Trivandrum has become a hub for both commercial and residential development, leading to an increase in demand for properties, including flats in Trivandrum. Along with the potential for capital appreciation, owning an apartment in this city comes with several tax benefits that can help homeowners save significantly.
Income Tax Deductions for Homeowners
One of the most notable advantages of owning an apartment in Trivandrum is the potential to claim tax deductions on home loans. Under Section 80C of the Income Tax Act, homeowners can deduct up to INR 1.5 lakh per annum on the principal repayment of the home loan. This deduction is applicable for both self-occupied and rented properties. This makes homeownership not just an investment in property but also a means to reduce taxable income.
Deduction on Home Loan Interest
In addition to the principal repayment, homeowners can also claim deductions on the interest paid on home loans under Section 24(b). The interest deduction can go up to INR 2 lakh per year for a self-occupied property. For properties that are rented out, there is no upper limit for claiming interest deductions, making it a beneficial option for investors who rent out their flats in Trivandrum.
Capital Gains Tax Exemption
Another key benefit of owning property in Trivandrum is the possibility of capital gains tax exemptions. If the property is sold after two years of ownership, the seller can claim long-term capital gains (LTCG) tax benefits. The LTCG tax rate is relatively lower compared to short-term capital gains, making real estate a more attractive investment option. Homeowners can also avail of exemptions under Section 54 of the Income Tax Act by investing the proceeds of the sale in another residential property within a specific timeframe.
Wealth Creation and Retirement Planning
Owning an apartment in Trivandrum can also be a great way to build wealth over the long term. Real estate tends to appreciate over time, especially in rapidly developing cities. This appreciation can result in significant returns on investment, especially for those who hold on to their property for a longer duration. Additionally, the rental income from flats in Trivandrum can offer a steady cash flow, making it an ideal source of passive income during retirement.
Urbanscape Properties: A Smart Investment Choice
As the demand for flats in Trivandrum continues to rise, Urbanscape Properties offers a range of modern, well-designed apartments that cater to the needs of both homeowners and investors. Our properties not only promise great living experiences but also come with the potential for long-term capital gains and tax benefits. Whether you’re a first-time homebuyer or an experienced investor, Urbanscape Properties provides excellent opportunities to make the most of your investment while enjoying the tax advantages that come with owning real estate in Trivandrum.
