We tie-up with major Housing Finance Companies and Banks to devise loan schemes
for our various projects to help you realize your dream of owning a Mauli Sai
residence and offices. Our innovatively designed packages will help you get
flexible and hassle free financial aid at highly competitive rates of interest
along with a host of other benefits.
Financial Feasibility Analysis:
Our executives will help you in your financial planning, loan procurement
procedure and in all legal matters related to the property you choose to buy.
Any question on Home Loans and Finance , please contact on:
The income tax authorities look with favour upon those servicing a housing loan
from specified financial institutions. And, it is up to you to be wise enough to
take advantage of this.
Section 24 of the Income Tax Act. ICICI BANK.
Interest paid on capital borrowed for the acquisition, construction, repair,
renewal or reconstruction of property is entitled to a deduction. That means you
are allowed to deduct an amount equivalent to the total interest payable on the
housing loan from your taxable income within the same financial year. This is
now a substantial amount. It started off with the Income Tax Department offering
Rs 15,000 as the maximum amount eligible for deduction in the case of
self-occupied property. This later got doubled to Rs 30,000. It did not stop
there. After getting enhanced to Rs 75,000, it was then taken to a limit of Rs 1
lakh. Presently, the limit stands elevated to Rs 1.5 lakh.
So, should you borrow money to acquire, construct, repair, renew or reconstruct
property on or after April 1, 1999, you get a deduction of up to Rs 1.5 lakh.
The criteria being: the property has to be acquired or constructed by March 31,
2003 and be self-occupied.
When put in figures, this is quite an amount. Assume taxable income of Rs 4 lakh,
placing the assessee in the highest tax bracket. Assume interest payment during
the first financial year is Rs 1.60 lakh Taxable income stands reduced to Rs 2.5
lakh (Rs 4 lakh - Rs 1.5 lakh being the maximum limit) Total tax amounts to Rs
49,980 (tax of Rs 49,000 + surcharge of Rs 980) Tax saved is Rs 45,900 (tax @30%
on Rs 1.5 lakh plus 2% surcharge as the investor is in the highest tax bracket)
That brings us to Section 88 of the Income Tax Act.
You get a 20% rebate on repayment of principal during a financial year. Once
again, over the years, the principal repayment eligible for rebate has been
enhanced from Rs 10,000 to the current limit of Rs 20,000. Stamp duty,
registration fee or other such expenses paid for the purpose of transfer of such
house property to the assessee is also considered under this amount. Going back
to our earlier example: Taxable income of Rs 4 lakh Taxable income stands
reduced to Rs 2.5 lakh Tax before rebate and surcharge: Rs 49,000 (no surcharge
is computed as surcharge is applicable on tax payable after allowing for rebate
under Section 88) Rebate of Rs 4,000 (20% of Rs 20,000 being principal
repayment) Tax less rebate of Rs 4,000 + surcharge @ 2%= Rs 45,900 Tax saved =
Rs 49,900 (Rs 45,900 as shown above plus rebate of Rs 4,000)
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