Key Tax Benefits On Your First Property Purchase

Buying your first home is a big dream. Did you know you can save money on taxes if you are a first-time buyer in India? That means you pay less money to the government. Let’s see what these key tax benefits for first-time buyers are and how you can use them to make your home more affordable.

Who Is a First-Time Buyer?

A first-time buyer is someone who has never owned a house or apartment before in their name. If this is your very first home, you can get special tax benefits from the government.

Choose the Right Tax Regime

There are two choices for paying tax: the Old Tax Regime and the New Tax Regime. If you want to use Key Tax Benefits On Your First Property Purchase, you should pick the Old Tax Regime. This will help you get the most savings.

Home Loan Tax Benefits

Let’s look at how much you can save on your home loan:

Interest on home loan (Section 24b): You can save tax on up to ₹2,00,000 every year for the amount you pay as interest if this is your main home.
Repayment of loan (Section 80C): You can save tax on up to ₹1,50,000 every year for the main loan amount you pay back. This also includes money you pay for stamp duty and registration fees.
Extra interest (Section 80EEA): If your loan is for an affordable home, and you took the loan between April 2019 and March 2022, you can save more tax—up to ₹1,50,000 extra for interest.
Stamp duty and registration fees: You can get a tax benefit for these fees too, up to ₹1,50,000 in the year you buy the home.

Chart: How Much Can You Save?