Real Estate Rescues: Last-Minute Tax Benefits in Property Investments

As the financial year concludes, seize last-minute opportunities for tax optimisation in real estate. Explore often overlooked benefits such as depreciation for substantial deductions. Leverage tax-saving avenues like interest deductions on home loans (Section 24(b)). Jointly owning property unlocks individual tax benefits, spreading the burden for significant savings. Strategically plan property transactions to utilise exemptions (Section 54, 54F) and minimise capital gains tax. Consult with a tax professional to capitalise on these hidden gems and enhance your wealth creation through real estate.

Key Takeaways

Claiming depreciation on a property's structure before the financial year closes can result in significant tax savings

Review and optimise home loan interest payments, taking advantage of Section 24(b) to claim deductions and reduce taxable income

Jointly owning a property allows each co-owner to claim individual deductions, spreading the tax burden and maximising savings

Ensure proper documentation and allocation of ownership shares when jointly owning a property to maximise tax benefits

Plan property transactions carefully to utilise exemptions under Section 54 and Section 54F of the Income Tax Act, minimising capital gains tax

Don't miss out on last-minute tax benefits in real estate. Consult with a tax professional to capitalise on strategic planning opportunities

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All

Property depreciation allows owners to claim deductions on the building's structure, reducing taxable income and serving as a tool for wealth creation.

Joint ownership allows each co-owner to claim individual deductions, spreading the tax burden. It's a strategy often overlooked, especially beneficial for married couples or family members.

Section 24(b) of the Income Tax Act permits deductions on the interest component of home loans, reducing taxable income. Reviewing and optimising these payments can be a significant tax-saving avenue.

Sections 54 and 54F provide exemptions on capital gains tax. This is if the proceeds are reinvested in another property or specified bonds within a specified time frame. Hence, offering a way to minimise tax liabilities.

Bajaj Finserv Direct Limited ("Bajaj Markets") offers to its customers, various financial products and services through its digital platform as a registered Corporate Agent with IRDAI, registered Investment Adviser with SEBI, registered Third-Party App Provider (UPI payments), and as DSA or Digital lending platform of its Partners. Further, Bajaj Markets also offers a marketplace e-commerce platform to facilitate transactions between customers and sellers on-boarded on the platform. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522 Corporate Agency (Composite) Registration no.CA0551 (valid till 10-Apr-2027) Investment Adviser, SEBI registration: INA000016083 (Validity - Aug 11, 2021 - Perpetual)

Real Estate Rescues: Last-Minute Tax Benefits in Property Investments

Key Takeaways

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