Author: Palak Khanna, Student at Amity University, Noida
INTRODUCTION
Real estate investment has long been a favoured option for individuals seeking financial security and long-term growth in India. One of the most significant drivers of interest in real estate is the variety of tax benefits that investors can avail. Through this presentation we explore the major tax benefits of real estate investments in India, providing insights into how these incentives help in reducing tax liabilities and enhancing returns on investment. The discussion covers tax deductions under different sections of the Income Tax Act, benefits for both residential and commercial property investors, and how recent reforms like the Goods and Services Tax (GST) and Real Estate (Regulation and Development) Act, 2016 (RERA) have impacted taxation in this sector. Real estate has always been one of the most preferred investment options in India, offering both capital appreciation and a steady income stream.
Besides the financial gains, investors are also attracted to real estate due to its favourable tax treatment under the Indian taxation framework. Several provisions under the Income Tax Act, 1961 provide tax relief for property buyers and owners. Investment in real estate is not a new thing, but it certainly has gained popularity in recent years. We understand the cause behind it. The transparency of the internet and access to unlimited knowledge has opened the gateways to financial stability for the masses, and people are now diving deep into this.
Investing your wealth in real estate is one of the most common ways to create a cash flow stream. Unlike other possessions, it commonly returns better numbers. Investing in real estate is always a win-win situation for you. It is not only about the profit you make while selling it or giving it on rent; it also offers you several exemptions from taxation from the government. These taxation laws allow you to save money by following some business conditions.
