Unlocking Wealth and Tax Benefits: Investing in Plots and Villas

Investors today want lucrative returns and substantial tax benefits that promise them long-term wealth and short-term gains. In this regard, real estate investments such as plots and villas are considered classics. There are many benefits of investing in real estate, especially in expanding cities. Cities like Bangalore have witnessed a steady demand in the real estate sector. 

Classic Featherlite’s premium villa plots stand out as one of the best investment options for savvy investors and those who dream of a luxurious and comfortable lifestyle. One of the many reasons people want to invest in plots is the tax benefits of investing in real estate.

Let’s take a closer look at the real estate investment benefits below.

Exploring the tax benefits of investing in real estate

Deduction on Home Loan Interests: Investors who purchase property or plots with a home loan can ask for tax deductions on the loan interests. This is as per the Section 24 of the Income Tax Act 1961. For self-occupied properties, the home loan interest on EMIs can be deducted up to two lakh rupees while for rented properties the interest deduction has no upper limit.

Depreciation: Every plot, property or asset will suffer minor to major damages over the years. Investors can claim the expenditures on repairs, maintenance, wear and tear and can save significant amounts of tax by listing these expenditures.

Deduction for First-time home buyers: People who want to purchase of plot under fifty lakh rupees with a loan of thirty-five lakh rupees can claim a deduction of fifty thousand rupees under section 80E.

Deduction for property investors: For those who want to purchase a plot or property under Rs. 45 Lakhs with a home loan which is lesser than Rs 35 Lakhs can get an additional deduction of Rs 1.5 lakhs under section 80EEA. The 80EEA is applicable for five years, starting from the year the loan was taken.

Deduction for Joint Investors: Investors or homebuyers who have a joint loan can claim individual deductions. Under the section 80C, individual homebuyers can claim up to Rs. 1.5 Lakhs for the principal payment while under section 24B, a total of Rs 2 Lakhs can be claimed for home loan interest.

Deductions on Principal Payment: Any investor who has purchased a plot and has not sold it for up to five years from the date of purchase can claim deductions of up to Rs 1.5 Lakhs.

Standard Deductions: All property owners with rental properties claim a standard deduction of 30% which is provided by India on all rental income.

Investors can enjoy plenty of tax benefits while investing in properties, plots or any other real estate asset. Investing in plots and villas, or any other real estate asset, promises a stable and consistent return. As mentioned, real estate steadily expands and grows over time, unlike the volatile stock markets, ensuring investors consistent and reliable return streams.

Classic Featherlite in Bangalore offers premium villa plots at The Sanctuary with the best amenities, promising a peaceful and convenient lifestyle. It is located in Gunjur, off Sarjapur Road, one of the most popular locations in the city.