Why you should buy a home before 31st march

Buy your first home by Mar 31

*Those planning to buy their first house should rush and complete the
formalities by March 31 to avail of the additional tax benefit against the
interest paid on a home loan. That's because an exemption available to
taxpayers will lapse in the current financial year which enables them to
reduce the interest paid from the taxable income. The reduction can be up
to Rs 1.5 lakh under section 24 of the Income Tax Act and up to Rs 1 lakh
under section 80EE against the interest paid on home loan.*

*The benefit under section 80EE can be availed only to buy the first house
of a value of Rs 40 lakh, provided the maximum loan amount is Rs 25 lakh.
The second provision is due to lapse. But those who have already borrowed
need not worry. The provision was introduced in the 2013-14 budget,
although the benefit was available only for a year to provide a much-needed
impetus to housing, which has been hit by rising interest rates and falling
real income levels. *

*In the Vote On Account presented on Monday, finance minister P Chidambaram
decided not to amend any direct tax provisions, many of which are due to
end on March 31, 2014. Although the next finance minister has the option to
reintroduce the benefit, it may not be available for the first three-four
months of 2014-15. Similarly, the benefit of income tax rebate to companies
which are involved in power generation and distribution will also lapse.
The provision of lower dividend tax paid by Indian companies on dividend
received from foreign companies will also lapse on March 31, 2014.*

*Source : Economic Times *