How Union Budget 2013 affects property investments?

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     How Union Budget 2013 affects property investments?
    The Union Budget 2013 has made a few changes, which is likely to impact the way you invest in property. Firstly, the Finance Minister has proposed a 1 per cent TDS on property valued at Rs 50 lakh and above.
     

    So, if you sell an apartment or land for a total consideration of Rs 50 lakhs and above, a one per cent TDS would be applicable. However, agricultural land is exempt from this TDS. The finer details on this are awaited.

    Another way property investment has been affected is through the increase of interest exemption on home loans. So, if you take a home loan and are paying an interest on home loans, you can claim deduction for an amount of up to Rs 2.5 lakhs, for loan size of Rs 25 lakhs.

    Of course, this should be your first house.

    Earlier the interest limit for claiming tax benefits on a home loan was restricted to Rs 1.5 lakhs on the interest paid. However, to claim this you would need to have the house in your possession. Apart from this you can also claim tax benefit of Rs 1 lakh of the principal paid under section 80C of the Income Tax Act.

    Read more on home to claim tax benefits on home loans 

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