All You Need To Know About Property Tax

If you have been looking into the market of home loan, you might have come across the term ‘property tax’ more than once. Though property tax varies from state to state and depends on the valuation of your home, you must remember that your home loan depends on the property tax. Each home loan has the provision that in case you fail to pay off the property tax in an “event of default”, the lender could even foreclose on your property even when all your mortgage payments have been done in a punctual manner.

Why should you concern yourself with property tax?

In India, property is a source of income for many and hence, it was only but natural that tax would be levied on any property you purchase, be it a humble shop or godown, flat or a proper residential building, provided you are using it to earn money in any form. The amount of property tax that you need to pay would depend on the value of the property that is being taxed in the first place.

property-tax_loanynatra.com
What is property tax?

Why is the property tax being charged at all?

The fact that the local municipal authority is the force behind the property tax being levied must tell you a lot about how the money you pay goes to towards the maintenance of the basic civic services in your city. The property tax in India is only charged on the real estate building and not on the plots of land, which don’t have any establishment in its vicinity.

How is the property tax calculated? What is Annual Value?

The property tax you need to pay is decided on the basis of the annual value of the let out or self occupied property. For the self occupied properties, the annual value is taken to be zero. However, if that property is rented, the property tax is calculated accordingly.

What are the tax benefits of your home loan?

 Under Section 24, you are empowered to claim up to Rs 200000 or the actual amount of repaid interest. However, you can only make the claim when you are in possession of the house.

 Under Section 80C, you can claim the principal up to the maximum limit of Rs 150000 across all the investments made under the section 80C. However, you might be needed to show the lender’s statement showing the not only the interest and principal components but also the repayment for the year.

How can a new homeowner avoid property tax traps?

Every homeowner should go to the pains of confirming the tax rate before signing on the dotted line to save himself from the reassessment and hikes of rate of interest. The estimate of a real estate broker of the approximate tax bill might prove to be helpful but even then you might be required to pay more tax in the subsequent years. You can potentially open up an escrow account in order to set apart the funds that would be drained to provide for the taxes.

Snippets On Home Loan Tax Benefits!

Must know things about home loan tax benefits!

home loan tax benefits
Home loan tax  benefit classes 🙂
  • Home loan borrowers are entitled to tax benefits under Section 80C and Section 24 of the Income Tax Act. These can be claimed by the property’s owner.
  • In the case of co-owners, all are entitled to tax benefits provided they are co-borrowers for the home loan too. The limit applies to each co-owner.
  • A co-owner, who is not a co-borrower, is not entitled to tax benefits. Similarly, a co-borrower, who is not a co-owner, cannot claim benefits. Which means, to claim tax on property, the person should be both co-borrower and co-owner.
  • The tax benefit is shared by each joint owner in proportion to his share in the home loan. It’s important to establish the share for each co-borrower to claim tax benefits. 
  • The certificate issued by the housing loan company, showing the split between principal and interest for the EMIs paid, is required for claiming tax benefits. 

If You Work for a company –

  • Submit your home loan interest certificate to your employer for him to adjust tax deductions at source accordingly. This document contains information on your ownership share, borrower details and EMI payments split into interest and principal.

If You Are Self-employed and a Freelancer –

  • You don’t have to submit these documents anywhere, not even to the I-T Department. You’ll need them to calculate your advance tax liability for every quarter. You must keep them safely to answer queries that may arise from the I-T Department and for your own records.

If you have another property along with your self-occupied house, and if you let-out that property, you can claim tax deduction for the entire interest amount on the let-out home’s loan. So, the income from that property is calculated from deducting the property tax, standard tax deduction (30%), interest on the let-out property home loan from the annual rental value of the let-out property.

For the first time home buyers, the government provides up to Rs 50,000 tax benefit on loan up to Rs 35 lakh taken for residential house.

There are more tax planning benefits by different investment opportunities. Explore and take expert’s advice for the best decision and for saving more.

Tax Planning On Loans

 

taxsavingtips_loanyantraMake some great tax deals on your loans!

Yes, Tax planning month is here. Take the expert advice for tax planning before you pay the late fees. 

Let us dive in for the perks when you are in different loans.

Tax Planning On Home Loans

Owning a home is a coveted dream. However, the ever-rising real estate prices make it difficult for many to buy a home, or even a piece of land, with just his/her savings. Home loans are meant for bridging this gap. Home loans come with a lot of fringe benefits in the form of tax breaks.

How do you benefit?

Anyone with home loan can avail tax benefits in two ways. The amount paid towards the principal repayment qualifies for deduction from income under Section 80C of Income Tax Act.

Another benefit comes in the form of deduction for the amount paid as interest on the home loan. The maximum amount you can claim as interest deduction from your income for a self occupied property is Rs 2 lakhs.

If you buy more than one property, only one house can be counted as a self-occupied property, and the others are deemed to be let out (even if they are not let out).

In case the loan is jointly availed between you and your spouse, the deduction of Rs 2 lakhs can be claimed by both of you.

taxplanning_loanyantraIn case of properties that are deemed to be let out or are actually let out, the entire amount (no ceiling of 2lakhs here) paid as interest is admissible as deduction under Section 24B of IT Act, while the rent received gets added to your income. In spite of that, it turns out to be a good bargain.

Tax payable Tax payable when availing home loan Tax payable when availing two home loans
Total income 8,00,000 8,00,000 8,00,000
Rent income Nil Nil     80,000
Deduction under Section 80 C 50,000 50,000 50,000
Principal amt deductible under Section 80 C Nil 15,000 15,000
Deduction under Sec 24B (Interest)    Nil   1,05,000   2,10,000
Total income on which tax  is payable 7,50,000   6,30,000   6,05,000
Tax paid   75,000      51,000       46,000

Tax Planning on Educational Loans

Education loans pave the way to your future.  Education loans could be availed for studying in India or abroad. But to get tax benefits from an education loan, the loan should be availed from any scheduled bank or notified financial institution.

Education loans can also be availed for self, spouse or children.  The legal guardian of any student can also avail this loan. Hence parents or spouses can also claim deduction for payment of interest.

How do you benefit?

Section 80E of Income Tax Act offers tax benefit for those availing educational loans for higher education.

However, as against home loan, only interest paid towards the repayment of loan earns deduction and not the principal. Also, there is no upper limit fixed for interest repayment. 

Tax benefit can be availed for a maximum of 8 years or on the loan repayment term, whichever is applicable. For example, if the entire loan is repaid in 6 years, then the tax benefit is also limited to that term.

Tax Planning On Car Loans

Not many know that car loans come with tax advantages. However, all car loans do not come with tax benefit. A car loan is a good tool for the self-employed to claim some tax deduction. If used right, offsets the interest paid over a depreciating asset.

How do you benefit?

Deductions from payable tax through a car loan can be availed only if you are a business man and declare the profit or capital gains earned from your business.

Another condition attached to this is that the vehicle has to be purchased in the name of your business. In that case, you get exemption on the interest as well as depreciation of the vehicle.

Under these conditions, you can include the interest paid for your car loan for tax exemption.

Besides this, businessmen can avail deductions on personal loans too under certain conditions, like the loan being taken as a business loan or for capital investment in business.

Loans taken wisely and within our limits would save us from a never ending debt spiral, which many fear. While loans affect your monthly as well as annual finances for other expenditures, the beneficial side of it in the form of tax saving, reduces their overall impact considerably.

 

 

 

 

Will it be a wise decision to take a max eligible home loan?

Decision would be based on multiple factors to be consider before you make a decision.

If you are young say if you are only 28 years and present CTC is good. Consider following factors.

  1. Other financial liabilities that you have.
  2. If you are not married then there it would add value by possessing a bigger house also beware of the costs which will be there for your marriage.
  3. If your work is going to have a good increments at least by 10% annually and you are planning your professional life for moving to next stage.
  4. Property you are buying is for Living or for renting it out.
  5. Work on the tax benefits you would get because of opting for loan.

My suggestion would be go with the Maximum and try to pay as much as you can before other costs come up in life. Like the marriage, kids, there education.

Always have following,

  1. Term insurance atleast 5–10 times your present salary.
  2. 10–20% as the emergency funds of your present salary. By means of Fixed deposits or equal safer and faster withdrawal.
  3. Start a health insurance for at least 3–5 lac apart from what your company is providing.

All the above if you start early at the age of 28 would be cheaper.

Then opt for maximum home loan.

If you plan your loan well, you will be able to close it faster and home will be fully yours.

If you are looking for Home Loans and want right home loan fit for you and to plan it well to close fast then apply on LoanYantra | Get Home Loan Online .

If you already have existing home loans then to plan it well and close faster, then manage the loan on Loanyantra for free Home Loan Management Company India: LOANYANTRA

SIX REASONS TO FILE YOUR INCOME TAX RETURN EVEN WHEN YOU DON’T HAVE TAXABLE INCOME

Whether a return should be filed or not depends on your income level. When total income is within the minimum exemption limit, it’s not compulsory to file a tax return. The minimum exemption limit is INR 2.5 lakh if you are less than 60 years old. For those who between 60 and 80 years of age, income is exempt up to INR 3 lakh. And for those who are 80 years and above INR 5 lakh is the exemption.

It may come as a surprise that return filing may be mandatory or beneficial in some circumstances where you do not have taxable income. Let’s understand in detail.

YOU OWN FOREIGN ASSETS OR FOREIGN BANK ACCOUNTS:

Return filing is mandatory if you are resident as per income tax act and own foreign assets Or where you have financial interest in an entity located outside India or have a foreign bank account. This applies even though you have less than taxable income or no income at all. Non-reporting of foreign assets has attracted a lot of attention from the tax department. Penal provisions apply if your status is resident and you do not report them. You must file a return and report all your foreign holdings.

SIX REASONS TO FILE YOUR INCOME TAX RETURN EVEN WHEN YOU DON'T HAVE TAXABLE INCOME


REASON – 1: WHEN YOU BUY/SELL SHARES:

Sale purchase of equity shares result in capital gains. Many a times retired individuals or housewives trade in equity shares but do not report their gains or losses. Not that it is mandatory to do so when your total income is below exemption limit. But if you have short term capital losses, you can adjust them against capital gains. And in case losses are not fully adjusted they can be carried forward for 8 years and adjusted against capital gains in future. These losses can be carried forward by submitting your tax return for the year to which they belong.

REASON – 2: WHEN YOU ARE SEEKING A REFUND:

The only way to claim a refund of taxes is by filing an income tax return. This applies to NRIs who have less than taxable income but is subject to TDS on rent payments. Or where, you could not submit Form 15G/Form 15H timely and TDS were deducted. Tax is already deposited by way of TDS, and the deductor cannot refund this TDS to you. It can only be claimed by filing a tax return. All returns seeking a refund must compulsorily be filed online.

REASON – 3: CLAIM DEDUCTIONS VIA RETURN:

We know that the minimum exemption limit is INR 2.5 lakh. But is this limit before or after allowing deductions? If you are claiming any deductions under section 80, those must be claimed through a tax return. So, INR 2.5 lakh exemption is the gross income level. If your income before deductions is more than this limit, you should file a tax return and claim deductions in the return. This applies even if there is no tax payable.

REASON – 4: REPORT EXEMPT INCOME:

Sometimes, we earn a large income which is exempt from tax such as commuted pension or tax-free gratuity or long-term capital gains from shares and we do not file a tax return or do not report them.

REASON – 5: ANNUAL INFORMATION REPORT (AIR):

The government tracks investments and expenses of PAN holders via AIR submitted by banks and financial institutions. Explaining the source of a large investment or expense made via exempt income, may be easier when such income is reported in your tax return.

REASON – 6: PLANNING TO APPLY FOR A LOAN OR A VISA:

The most trusted indicator of your earnings is your tax return. Visa authorities’ may ask for copies of your return. Lenders also request for tax return copies as proof of your income capacity. Sometimes, tax returns also have to be submitted for applying for a credit card. So even though, you may have less than taxable income you can benefit by filing your returns regularly.

Disclaimer: These are few of the important reasons to file your income tax return even when you don’t have taxable income. Expert advice and user discretion is recommended prior to application of the contents of this document to specific situations.

* * * * * * * * *

Trouble Shooting on e-Filling

trouble-e-filing

For DSC Registration

Problem Description: I am not able to register my Digital Signature Certificate. Or while trying to e-File Income Tax Return using Digital Signature Certificate, the ‘Select your .pfx file’ or ‘Select with your USB Token’ buttons are not displayed or are not clickable.

Corrective Action: This occurs due to the following reasons:

* Check if Java Runtime Environment 1.7 or above is installed in your PC. If it is not installed, click here to download.
If Java Runtime Environment 1.7 or above is installed in your PC and still you are unable to register DSC to e-Filing application, this is because the Java is disabled.
GO TO Internet Options .Advanced .Settings .Enable the check-box for ‘Java’.

Problem Description: An error appears on the screen: The E-mail ID in the Digital Signature Certificate does not match. Please retry.

Corrective Action: The registered e-mail ID in your e-Filing profile is not the same as in your Digital Signature Certificate. In case it is not the same, you can:

* GO TO ‘Profile Settings’ (in e-Filing Portal) -> ‘Update contact details’ and change the e-mail ID or,
* Get a new Digital Signature certificate from your Certificate Provider which contains the same e-mail ID as mentioned in your e-Filing profile.

Problem Description: An error appears on the screen: Invalid Digital Signature Certificate. Please contact your Certificate Provider.

Corrective Action: This could be due to the below reasons:

* Digital Signature Certificate is revoked.
* Digital Signature Certificate is not Level 2 or above. Only Level 2 or above Digital
* Certificates can be registered on e-Filing website.
* Digital Signature Certificate is not created in SHA-1 (Hash algorithm and 1024 bit RSA) or SHA-2 (Hash algorithm and 2048 bit RSA).

Contact the Certificate Provider and get your Digital Signature Certificate checked.

Problem Description: An error appears on the screen: Validity of the Digital Signature Certificate has expired. Please update a valid Digital Signature Certificate.

Corrective Action: The validity period of the Digital Signature Certificate has ended. Attain a new Digital Signature Certificate from the Certified Service Providers and then
register.
Problem Description: An error appears on the screen: Validity of the Digital Signature Certificate has not commenced. Please contact your Certificate Provider.

Corrective Action: The validity period of the Digital Signature Certificate has not yet started. A Digital Certificate cannot be registered if the validity period is yet to begin.
You can:

* Register the same Digital Signature Certificate post the ‘Start date’ of the Digital Signature Certificate.
* Contact your Certificate Provider and attain a Certificate with a ‘Start Date’ same or less than the date of registering the DSC with e-Filing website.

Problem Description: An error appears on the screen: Invalid Digital Signature Certificate. The trusted Parent Certificate could not be verified.
Corrective Action: Digital Signature Certificate does not belong to a Trusted Certificate Provider. To view the list of the Certified Certificate Providers. In this case, you should contact the Certificate Provider and get your Digital Signature Certificate checked.
Problem Description: An error appears on the screen: The PAN mentioned in the Digital Signature Certificate does not match. Please retry.
Corrective Action: This could occur due to the below reasons:

* The PAN in the Digital Signature Certificate does not match with your registered PAN. You should contact your Certificate Provider and get the PAN in your Digital Signature Certificate checked.
* If you are a Firm/Company/ AOP/BOI/ Legal authority/ Co-operative society, Artificial Juridical Person/ Trust, ensure that the PAN mentioned in the Digital Signature is that of the current Principal contact (Authorized signatory). If your principal contact has changed, ensure that you have updated the PAN details of the new principal contact (under ‘Profile Settings’ • ‘Update Principal Contact’s details), and the PAN encrypted in DSC matches with PAN of Principal contact.

Problem Description: An error appears on the screen: The Digital Signature Certificate is already registered.

Corrective Action: A Digital Signature Certificate (DSC) cannot be registered by multiple users. This error appears due to the below reasons:

* The DSC you are registering belongs to someone else. Make sure that the DSC you are registering belongs to you and has your PAN and e-mail ID encrypted.
* The only exception to this rule is that an authorized signatory (principal contact) for an organization should register his/her own DSC to e-File for the organization. The same DSC can be used for personal e-Filing too.

Problem Description: I am the Principal contact (authorized signatory) for a Firm/Company/ AOP/BOI/ Legal authority/ Co-operative society, Artificial Juridical Person/ Trust. I am trying to upload Income Tax Return using Digital Signature Certificate (DSC) for the same but I am getting an error message saying “PAN mentioned in Personal/ Verification section is invalid”. What should I do?

Corrective Action: Please ensure that the PAN entered in the Verification section of the Income Tax Return is your (Authorized signatory) PAN and not of the Firm/Company/ AOP/BOI/ Legal authority/ Co-operative society, Artificial Juridical Person/ Trust. Also, if the Income Tax Return is being digitally signed, the PAN encrypted in the DSC must match with the PAN mentioned in the verification section.

Problem Description: An error appears on the screen: Invalid File format. Please retry.

Corrective Action: The DSC uploaded is not a valid DSC. Please select a valid DSC and upload it.

For Opt for Higher Security/ LOGIN

Problem Description: An error appears on the screen: You need to register your Digital Signature Certificate before opting for Higher Security.

Corrective Action:

* For Individual/CA -Please register your DSC by navigating to ->My Profile -> Register Digital Signature Certificate. On registering, you can enable higher security by navigating to -> My Profile -> Opt for Higher Security.
* For Company/BOI/Local Authority/Firm/Trust/AOP/AJP -Please update your Principal Contact details and register your DSC by navigating to -> My Profile -> Update Principal Contact and then My Profile -> Register Digital Signature Certificate. On registering, you can enable higher security by navigating to ->My Profile ->Opt for Higher Security.

Problem Description: I am not able to enable Higher Security.

Corrective Action: To enable higher security, GO TO ‘Profile Settings’ •
‘Opt for Higher Security’.

If you are not able to enable higher security, it could be because your Digital Signature Certificate is NOT registered with e-Filing web-site. GO TO ‘Profile Settings’ • ‘Register
Digital Signature Certificate’ and register the Certificate. Once Certificate is registered, enable the option for higher security.

Problem Description: I have enabled higher security. I am uploading my Digital Signature Certificate during LOGIN but I am unable to LOGIN.
Corrective Action: In case you are not able to LOGIN using Digital Signature Certificate, it could be due to the following reasons:

* The Digital Signature Certificate used for LOGIN is not the registered Digital Signature Certificate. Use the same registered Digital Signature Certificate to LOGIN.
* Digital Signature Certificate is Revoked (Invalid). Contact the Certificate Provider in such cases.
* Digital Signature Certificate is not from a Trusted Certificate provider. Contact the Certificate provider in such cases. Also, to view the list of Certified Certificate Providers.
* The Digital Signature Certificate’s validity has EXPIRED. In such cases, you can LOGIN with User ID and Password ONLY (Date of Birth/ Incorporation in case of Individuals, Corporate and Chartered Accountants), but your higher security is disabled. To enable it again, attain a fresh valid Digital Signature Certificate and
register. To register, GO TO ‘Profile Settings’ • ‘Register Digital Signature Certificate’. Once Digital Certificate is registered, you can enable higher security.

Problem Description: I have enabled higher security. I am uploading my Digital Signature Certificate during LOGIN but I am getting an error: Invalid Digital Signature Certificate. Please retry.

Corrective Action: This is because the Digital Signature Certificate being used to LOGIN is not the registered Digital Signature Certificate. Use the same Digital Signature Certificate which is registered to LOGIN.

Problem Description: I have enabled higher security. I am uploading my Digital Signature Certificate during LOGIN but I am getting an error: Invalid Digital Signature Certificate. Please contact your Certificate Provider.

Corrective Action: This error occurs if the Digital Signature Certificate registered with e-Filing is revoked (invalid). Contact the Certificate Provider in such cases.

Problem Description: I have enabled higher security. I am uploading my Digital Signature Certificate during LOGIN but I am getting an error: Invalid Digital Signature Certificate. The trusted parent certificate could not be verified.

Corrective Action: This error occurs if the Digital Signature Certificate registered with e-Filing is not from a Trusted Certificate provider. Contact the Certificate provider in such cases. Also, to view the list of Certified Certificate Providers.

Problem Description: I have enabled higher security. I am uploading my Digital Signature Certificate during LOGIN but I am getting an error: Cannot read Certificate Keystore file <File Name>. The file is either not in PKCS#12 format (.P12 or .PFX) or is corrupted or the password is invalid.

Corrective Action: This error occurs if the Password is not entered properly OR the Digital Signature Certificate is improper. Ensure the password entered is correct. If the problem persists, contact your Certificate provider.

Forgot Password

Problem Description: I have forgotten my password. How can I reset my password?

Corrective Action: Password can be reset by following the below steps:

* Click on the ‘Login here’ option on the homepage.
* Click on ‘Forgot Password’ link.
* Enter your User ID and click ‘Continue’.
* You can choose to reset your password using one of the three options-Answer Secret Question, Upload Digital Signature Certificate (if registered)
* Provide the required details and Submit.
* On submission, the details entered are validated. On success, the user will be able to enter the new and confirm password and click Submit.
* User will be able to LOGIN with the new password.

Problem Description: What is the secret question and answer I need to provide to reset my password?

Corrective Action: The Secret Question and Answer is the one selected at the time of registration OR if you have changed it on a later date under ‘Profile settings’. Provide the same secret question and answer to reset the password.

Problem Description: I am trying to upload the Digital Signature Certificate but it displaying an error.

Corrective Action: In case you are not able to upload Digital Signature Certificate, it could be due to the following reasons:

* The Digital Signature Certificate used is not the registered Digital Signature Certificate. Use the same registered Digital Signature Certificate to LOGIN.
* You have not registered your Digital Signature Certificate. You cannot use this option to reset the password till the time the DSC is registered.
* Digital Signature Certificate is Revoked (Invalid) or Expired. Contact the Certificate Provider in such cases.
* Digital Signature Certificate is not from a Trusted Certificate provider. Contact the Certificate provider in such cases.
* Legal Heir
Problem Description: What all document do I need to attach as a ZIP file during registering myself as Legal Heir?

Corrective Action: You need to scan the following documents and ZIP them in a file:

* Copy of the Death Certificate of the deceased person,
* Copy of the PAN card of deceased person,
* Self attested copy of PAN card of the Legal Heir.
* Self attested copy of Legal Heir Certificate
Problem Description: I received an e-mail from Income Tax Department stating that my request for Legal Heir has been accepted and I am assigned as the Legal Heir for the deceased. Can I e-File for the deceased person now?

Corrective Action: Yes.

Problem Description: I am assigned as the Legal Heir for the deceased person. How can I e-File for the deceased person?

Corrective Action: LOGIN using your own User ID, Password and Date of Birth. Once logged in, GO TO ‘e-File’->’Upload Return’. Select the PAN from the drop-down option as the deceased’s PAN. Fill the remaining details on the page and upload XML. Sign using DSC if available and applicable.

Problem Description: I am trying to upload Income Tax Return for a deceased but I am getting an error message saying “PAN mentioned on Personal/ Verification section is invalid”. What should I do?

Corrective Action: Please ensure that the PAN entered in the Verification section of the Income Tax Return is your (Legal heir) PAN and not of the deceased person. Also, if the Income Tax Return is being digitally signed, the PAN encrypted in the DSC must match with the PAN mentioned in the verification section.

Problem Description: Whose Digital Signature Certificate (DSC) can I use to e-File the deceased’s Income Tax Return?

Corrective Action: You need to use your own valid Digital Signature Certificate (DSC) which is registered with e-Filing.

Miscellaneous

Problem Description: I am the Principal Contact (authorized signatory) for a Firm/Company/ AOP/BOI/ Legal authority/ Co-operative society, Artificial Juridical Person/ Trust. I am trying to upload Income Tax Return for the same but I am getting an error message saying “PAN mentioned in Personal/ Verification section is invalid”. What should I do?

Corrective Action: Please ensure that the PAN entered in the Verification section of the Income Tax Return is your (Authorized signatory) PAN and not of the Firm/Company/ AOP/BOI/ Legal authority/ Co-operative society, Artificial Juridical Person/ Trust. Also, if the Income Tax Return is being digitally signed, the PAN encrypted in the DSC must match with the PAN mentioned in the verification section.

Problem Description: I am unable to select the date from the calendar provided.

Corrective Action: Open your Internet explorer browser and GO TO   Tools ->Internet Options -> Advanced ->Reset Internet Explorer settings, and Click the Reset button.

Problem Description: I am trying to upload the Income Tax Return XML but I am getting an error ‘fake path and can’t read the file’. What should I do?

Corrective Action: Please do the following settings: Internet explorer ->
Tools -> Internal Option -> Security -> reset the setting to medium high, close and reopen the Internet Explorer. OR Create a folder called ‘fakepath’ in your C drive and store the XML in the folder. On BROWSE, select this file and upload.

Problem Description: I am trying to upload my Income Tax Return but an error is displayed as ‘Please upload a valid XML’.

Corrective Action: This occurs when the file you are trying to upload is not an XML file. Please ensure that you upload the XML (generated from the Excel utility) and not the Excel.

Good news with the release of Budget 2016- 17. 50 = 50!!?? Join with Loanyantra for the double benefit !!!

Buying a new home remains as a dream if you have no sufficient funds.  This is the time the heart understands how important every penny is. So, for the first time home buyers,  if they can save 50,000 on the first year, on a 50 lakh home, is it not a boon?. 

So how can you save 50k on the home loan?

Budget 2016-2017 states “First home buyers to get deduction for additional interessavings on tax_loanyantrat of Rs. 50,000 a year for loans upto Rs.35 lakh.” 

So, as we know, the tax exemption can be claimed on the principal and the interest as well. Now we the first home buyers can claim more 50K as exemption. Provided the apartment cost should not exceed 50 lakhs and the loan amount should be not more than 35 lakhs.

How is it more useful with loanyantra.com?

As a loyal customer of loanyantra, you can avail 0.10% discount on the prevailing interest rate. 

For instance, you are a first time home buyer and  seeking for a home loan of 35 lakhs. So, you get the loan at the prevailing interest rate, say 9.5%.

Now let us see the two benefits you can avail for the first year.

Benefit 1: According to the budget  proposal, you can claim extra tax exemption 50k.

Benefit 2 : According to loanyantra, 0.10% discount on the interest rate. Which will save upto 1 Lakh.

Additional Benefit : Loan Management by loanyantra.com till the end of your loan.

So, choosing a home loan is as important as choosing a home. Work clever and plan smart.

Second Home – A Relaxing Option?

With increasing affluence on the one hand and a growing realization that there is a need for a relaxed lifestyle at least on weekends, the concept of second homes appears to be gaining popularity. According to the National Council of Applied Economic Re­search, the number of households de­scribed as rich is expected to reach 11 million by 2013 from 3 million in 2003. Meanwhile, the number of mid­dle class aspirers is predicted to leap even more dramatically, from 46 mil­lion to 124 million. The number of HNW Is in India is growing at 20% YoY, second only to Singapore.

This growing opulence of Indians surely makes the second-home mar­ket pretty hot. According to a study conducted by Kapston.com, a Banga­lore-based E-business consulting firm, second-home sales in India in­creased by 50% from 2002 to 2007. The trend slowed a bit in 2008, most­ly due to the economic woes of the US. Then it picked up in mid-2010 to slow down slightly only in the recent time, although now it’s a normal, reg­ulated market where good stuff sells very quickly.


Motive 

Different people invest in a secondproperty with different motives. For some, second home is to have a re­laxing place away from the hustle and bustle of city life, extreme heat and the stresses of work. There are many who’d like to have a second home to spend the rest of their lives in, post-retirement. Others invest in a second home in order to earn rental income.

The primary reason for buying a second home is still lifestyle among Indians; however people have start­ed realizing the investment potential, but the investment consideration comes in a strong second place.


Be Wise 

Even if buying a second home in­volves spending a lot more money be­fore retirement, you will be wise to consider it as an investment. If, for ex­ample, you buy a second home five years before you retire, you will be able to earn money by renting out your property for the next five years, and cover a part of the mort­gage costs.


For NRIs

And it’s not only for Indian dwellers. Non-resident Indians are buying this mid-level housing as well. NRIs can easily attain housing in In­dia because they were born there— but they can also buy even if their parents or grandparents were born there.

Many NRIs choose to go back to where they came from; they have dreams of having India as a possible place to retire, where hired maid ser­vants will run their day-to-day tasks while they relax close to friends and family. The home towns where they grew up always have a certain draw on their heart strings.


A second home is not a bad idea. It can serve the purpose of a change from the routine, once in a while, and leave you refreshed and energized. It can also be a wise investment. In fact people in the higher income brackets even opt for more than one second home as part of their long term in­vestment strategy.