Buying your dream house which you can call yours is the deep rooted desire of everyone and government has been making it quiet an easy move with its subsidies on interest rate and housing for all by 2022 mission. More so, at this point in time, there are few other measures turning out favourable for you if you have done enough research and want to give a go ahead to your home purchase decision.
1. RERA: With RERA, more transparency has been introduced and now developers cannot cheat you on any of the parameters say carpet area, project variables, deadline. And if found guilty they will have to dole out a heavy penalty in lieu of it.
Also a dedicated RERA portal which is directed to be erected for each of the state has to include all the property details such as the construction phase of the property. Also, no project cannot be initiated without registration with the RERA authorities. So, now without much hesitation and diligent work, you can put your hard earned money in the property of your choice.
2. CLSS under PMAY: The credit linked subsidy scheme which is provided as interest subvention to middle income group who earn between Rs. 6 lakhs and Rs. 18 lakhs is also a big boost. In the MIG 1, the loan is being extended with an interest subsidy of 4% while in the higher annual income bracket between Rs. 12 lakh and Rs. 18 lakh, an interest subsidy of 3% is being offered.
More so, the scope of the scheme is being continually enhanced to include not just the urban area but also coastan and other village habitats.
3. Better property rates: After the income tax department has found developers to be hoarding on the property as 'stock in trade' in the hope of price appreciation in the near future. As a crack down on such a practice, such properties shall now be taxed @ 8-12% if they are in stock for over 1 year from the date of receiving the project completion certificate. With this in force, property buyers can expect a further sliding in the rates in the sector which is reeling with slow growth.
4. Tax benefit under Section 80EE: Other than the usual benefits of principal and loan repayment deduction benefit available, first time home buyers can also claim the deduction u/s 80EE provided they meet the following criteria.
i. Loan should be sanctioned in 2016-17 or thereafter for first time home buyers who do not have any other residential premise in their name.
ii. The value of the loan should not be exceeding Rs. 35 lakh and the property should not be valued over Rs. 50 lakhs.
iii. The tax deduction is only available only to individual taxpayers and not to AOPs or HUFs.