Investing in land in India is perhaps the most effective way to accomplish riches and independence from financial freedom. Possessing a property is fairly similar to being an entrepreneur, which makes it more straightforward to deduct many costs.
- Tax benefits
- Portfolio Diversification
- Cash flow
The property is treated as a Small business by the IT department, allowing the buyer to enjoy multiple tax benefits.
→ Section 80C
Under section 80c of the income tax act of the Indian constitution, you can claim a deduction on the investment made in the return of income . the income should be for the year in which the investment was made.
- The maximum tax savings limit is Rs 1.5 lakh
- There is no minimum limit
→ Section 24 of the income tax act
if you have a take-home loan for investment in real estate then you can get the deduction during income tax under section 24 of the income tax act deduction are allowed from the income that an individual earns through house property.
2 Types of Deduction
I] Net annual value
II] Interest in Borrowed Captial
→ Capital Gain Tax
A taxpayer has an option to make an investment in two residential house properties in India to claim section 54 exemption.
Property appreciation in the land or real estate refers to the increment in the worth of land. Property throughout some undefined time frame. One of the objectives of investing in real estate is to get a positive profit from the investment. when an owner decided to sell the property in the future.
Genuine Portfolio Improvement is accomplished. When the Portfolio is contributed across Uncorrelated Assets. The simplest way to achieve to taking a risk-appropriate exposure to Shares & bords.
-> Real estate.
To be added to Your Investment Portfolio
Inflation as you all know day by day increases the price of goods and services in an economy. it can destroy your personal finance why if your personal finance. that is why cash flow can act as a shield for protecting your personal finance.
Real estate is one of the best ways for recurring earnings. by the amount of profit you get each month after collecting all income paying all operating expenses and setting aside a cash reserve for future repairs
CASH FLOW = GROSS RENTAL INCOME – ALL EXPENSES