10 TAX SAVING TIPS FOR HOMEOWNERS

As a homeowner, you likely know that owning a property comes with a wide range of expenses, from mortgage payments to property taxes. However, there are several tax-saving strategies you can use to reduce your overall tax burden and keep more of your money in your pocket. In this blog, we’ll explore 10 tax-saving tips for homeowners to help you maximize your real estate tax savings.
TAKE ADVANTAGE OF THE HOME LOAN TAX SERVER:
Interest paid on a home loan can be claimed as a tax deduction under Section 24 of the Income Tax Act. The maximum amount that can be claimed is up to Rs 2 lakhs per financial year. Stay abreast with the changing home loan tax saver norms by getting in touch with top apartment builders in Bangalore who can guide you the right way.
INVEST IN TAX-SAVING INVESTMENTS:
There are several tax-saving investments that you can make as a homeowner, such as Public Provident Fund (PPF), National Savings Certificate (NSC), Equity-Linked Saving Scheme (ELSS), and a lot more. These investments not only help you save on taxes but also help you to grow your wealth over time.
USE TAX-SAVING PLANS:
Tax-saving plans, such as the National Pension System (NPS) and the National Savings Scheme (NSS), are a great way to save on taxes and secure your financial future. It is comparatively simpler & secured to opt for tax-saving plans.
CLAIM HRA EXEMPTIONS:
If you live in a rented property, you can claim House Rent Allowance (HRA) exemptions, which can help to reduce your overall tax burden. If you are really confused as to how to go about claiming these exemptions you can very well approach trusted property builders in Bangalore themselves, who can also give you a heads-up to start off. Claiming HRS exemptions is indeed a good way out for real estate tax savings when dealt with, smartly.
CLAIM DEDUCTIONS FOR REPAIRS & MAINTENANCE:
Another important way for real estate tax savings is through writing off the expenses incurred. If you have made any repairs or renovations to your property, you may be able to claim deductions for the cost of these expenses. But however, there are a lot of terms and conditions that apply. Get acquainted with the same to claim the maximum.
CLAIM DEDUCTIONS FOR PROPERTY TAXES:
Property taxes are a significant expense for homeowners, but they can also be used to reduce your overall tax burden. Be sure to keep track of your property tax payments and claim deductions for them when you file your taxes. It’s up to you to make use of every source available to enjoy maximum real estate tax savings.
CLAIM DEDUCTIONS FOR HOME INSURANCE:
Home insurance is a necessary expense, but it can also be used to reduce your overall tax burden. But to make use of them as a good source for real estate tax savings you need to keep track of your home insurance payments and claim deductions for them when you file your taxes.
CLAIM DEDUCTIONS FOR HOME LOAN INSURANCE:
If you have taken out a home loan, you may be required to take out insurance to protect the lender in case of default. The premium paid for this insurance can be claimed as a tax deduction & thereby a good real estate tax saver.

SECTION 80C:
Section 80C of the Income Tax Act allows individuals to claim deductions for certain investments and expenses, including home loan principal repayment, National Savings Certificate (NSC), Public Provident Fund (PPF), and more.

SAVE TAX ON INCOME FROM HOUSE PROPERTY:
If you rent out your property, you can claim deductions for the income earned from it. You can claim deductions for the interest paid on your home loan, as well as for repairs and maintenance expenses. Additionally, you can claim a standard deduction of 30% of the net annual value of the property, which can further become profitable real estate tax savers.
TAKE AWAY:
Owning a property comes with a wide range of expenses, but there are several tax-saving strategies that homeowners can use to reduce their overall tax burden. From taking advantage of the home loan tax server to claiming deductions for repairs and maintenance, there are innumerable ways to maximize your real estate tax savings as stated above. Additionally, investing in tax-saving investments, using tax-saving plans, and claiming deductions for property taxes, home insurance, and home loan insurance, can also help you to save on taxes.
Not to forget, the first & foremost step is to make sure that you make the right real estate investment today so that you can take advantage of a plethora of tax-saving techniques tomorrow.
One pro-tip: Invest in golden properties that will give you steady cash flows & promising capital appreciation like flats in Sarjapur, and apartments for sale in Whitefield. Why wait? Let’s get started right away!