Any tax benefit on paying from your own pocket for home buying without loan ?

POSTED BY aggarwaladi ON February 8, 2014 9:55 am ONE COMMENT

Hi,

I have invested in an upcoming Built up housing scheme, with 30% payment already made from my savings.The balance 70% is to be made in 10 equal installments in the next 5 years(i.e. till 2019) with an interest rate of 12%. Current status of the project is – Not yet started. Possession is expected in 2017.

I have the capacity to make the balance 70% payment from my pocket. My question here is; if I make all the balance payments from my savings , would I get get any Tax benefit either from now onwards or in future. If yes how, as I have known of Tax benefit only in case an individual takes Home loan?

Thanks in advance,

Adi

One reply on this article “Any tax benefit on paying from your own pocket for home buying without loan ?”

  1. Credexpert says:

    Dear Aggarwaladi,

    No, you would not be eligible for any tax benefit under the Income Tax Act if you repay the balance 70% of home cost from your own pocket.

    Availing a home loan would make you eligible for tax benefit under section 80 C (Principal amount) and 24 B (Interest payment) of the Income Tax Act.

    Our suggestion would be that you opt for a loan as it would be beneficial from the tax angle and invest the funds available with you in your desired savings plan e.g. mutual funds, shares, fixed deposit etc.

    Regards,
    Credexpert
    http://www.credexpert.in

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