Monthly Archives: February 2010

Buying a property or house to reduce the tax liability

It is best time to start your tax saving plan or planning your tax saving strategies as the financial year comes to an end. Buying a property or house can also be used to reduce the tax liability to a certain extent.

Under Section 24 of the Income Tax Act, interest paid up to Rs 1.5 lakhs per annum on a home loan can be set-off from salary or business income. In case there are co-owners to a property, each of them can claim tax benefits separately , in proportion to their share holding in the property.Co-owners can claim a deduction of up to Rs 1.5 lakhs per annum separately, on interest paid towards a self-occupied house, and also up to Rs 1 lakh per annum towards principal amount repaid.

Under Section 88 of the Income Tax Act, a home loan borrower can claim a deduction of up to Rs 1 lakh from his taxable income on repayment during the year along with specified savings instruments like provident fund. Under Section 24 of the Income Tax Act, the entire pre-EMI interest amount is allowed as a deduction equally over five years (20 percent of total interest paid per annum), starting from the year in which the construction is completed.

Source: The Economic Times

Advertisements

IT sector boom results increase in demand for real estate sector

Most IT hubs like Hyderabad, Chennai, Gurgaon, Bangalore and Mumbai are witnessing higher demand for office space from IT companies.The revival of growth in the information technology (IT) industry is rubbing off on the real estate sector, too.For Santosh Kumar, CEO (operations) at leading property consultant Jones Lang LeSalle Meghraj, it is the revival of the US economy that has encouraged IT companies to start looking at India again for expansion.

Real estate players also report an increase in demand from the IT sector.Increase in the number of enquiries from the IT sector this quarter (ending March) is primarily due to the expansion in terms of hiring more manpower.Network Appliance Incorporated recently acquired a piece of land in Bangalore to expand India operations. Noida-based QA InfoTech is planning to move to a campus that will be almost double the 50,000 sq ft it currently occupies in three separate facilities.

With all large infotech companies back in hiring mode, there has been a spurt of activity in the commercial real estate segment.A demand for office space in the range of 25,000-30,000 sq ft from the IT sector is seen and this is definitely going to increase in the next couple of months.