Taxpayers hardly received any benefit from the Union Budget 2019 except an additional tax break of Rs 1.5 lakh on interest paid by homebuyers under Section 80EEA. This is over and above Rs 2 lakh deduction available on the interest paid by homebuyers on home loan under Section 24B.
Therefore, in total, a home buyer can claim a deduction of Rs 3.5 lakh during the year. However, there are certain conditions that need to be fulfilled before you claim this deduction.
Experts believe as the real estate market is going through a lot of stress with sales happening at a slow pace and prices not being risen over the past few years, developers have been offering various schemes and discounts. Therefore, it is an opportune time to buy your dream house.
"It is a good time to buy your dream house because interest rates are at multi-year lows. After considering these tax deductions, the interest cost may come down even further," says Sudhir Kaushik, CFO, Taxspanner.com.