Real Estate Tax Benefits: What Homebuyers and Investors Should Know

Investing in real estate offers not only the advantage of asset appreciation but also significant tax benefits. Understanding these benefits can enhance returns and inform better investment decisions. This article delves into key tax advantages available to homebuyers and investors, with a focus on opportunities in the best luxury projects in Bhubaneswar.

Deduction on Home Loan Interest

Section 24(b) of the Income Tax Act allows a deduction on interest paid for home loans. For self-occupied properties, the maximum deduction is ₹2,00,000 per annum. For rented properties, there’s no upper limit on the interest deduction, making it a substantial benefit for investors.

Principal Repayment Benefits

Under Section 80C, individuals can claim deductions up to ₹1,50,000 on the principal repayment of home loans. This includes payments towards stamp duty and registration fees, providing immediate financial relief during property acquisition.

Additional Deduction for First-Time Homebuyers

First-time homebuyers can avail an extra deduction of ₹50,000 on home loan interest under Section 80EE. To qualify, the loan amount must be less than ₹35,00,000, and the property’s value should not exceed ₹50,00,000.

Capital Gains Tax Exemptions

Section 54 offers exemptions on long-term capital gains when the proceeds are reinvested in another residential property within a specified period. This provision encourages reinvestment and aids in tax planning for investors.

Standard Deduction on Rental Income

A standard deduction of 30% on net annual value is available for rental income, covering maintenance and repair costs. This deduction simplifies tax calculations for rental property owners.

Tax Benefits for NRIs

Non-resident Indians (NRIs) enjoy similar tax benefits as residents, including deductions under Sections 80C and 24(b). These incentives make investing in Indian real estate, particularly in the best luxury projects in Bhubaneswar, attractive for NRIs.

Impact of Recent Tax Reforms

The 2025-26 budget introduced measures to boost the spending power of the middle class, likely spurring investments in the residential housing space.

Luxury Real Estate Opportunities in Bhubaneswar

Bhubaneswar’s real estate market is witnessing a surge in luxury projects slated for completion in 2025. Notable developments include:

DN Pallaciya: Located in Sundarpur, offering 3.5 BHK apartments with modern amenities.
Khushi Capella: A premium residential project featuring luxury apartments in prime areas.
JB Polaris: Situated in Bhubaneswar, offering luxury living spaces with contemporary designs.
Laxmi Fresh Living: Located in Phulnakhara, providing 2, 3, and 4 BHK luxury apartments.
Urbanyx Court: A modern residential complex offering luxury flats with state-of-the-art facilities.

Investing in these best luxury projects in Bhubaneswar not only promises upscale living but also substantial tax advantages.

Utkal Builders: Pioneering Luxury Living

Utkal Builders has been instrumental in transforming Bhubaneswar’s skyline with their commitment to quality and innovation. Their project, Utkal Levels, epitomizes luxury and modern architecture, offering residents a harmonious blend of comfort and style.

In conclusion, understanding the tax benefits associated with real estate investments can significantly enhance financial outcomes. Coupled with opportunities in the best luxury projects in Bhubaneswar, investors and homebuyers stand to gain both in asset appreciation and tax savings.

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DISCLAIMER

All project information and details displayed on the site, including but not limited to the information and details contained in project related materials that you may download are for information purposes only and do not constitute an offer under any law for the time being in force. The Company shall not be liable to you for any decisions you may take as a result of or on the basis of such information and encourages you to contact the Company directly for up-to-date and accurate information.

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Mr. Rakesh Bhura

Director

Mr Rakesh Bhura holds the MBA degree from the Leeds University,UK. The youngest and the most dynamic among the directors he plays an important role in planning and execution at the site. He is actively involved in site execution,purchases & manpower management. He has his own innovative approach towards the projects and all his endeavours have been successful. Mr Bhura is the young promising face of Utkal Builders.

Mr. Prakash Bhura

Director

Anchors the sourcing function at Utkal. He is credited with deriving the best value from our sourcing partners – contractors and vendors of material inputs. Recently, he has taken additional responsibility of the marketing function. However, complicated and large his tasks, his energy and positive attitude make them all possible! And somewhere in the middle, he also finds time to pursue sports and instruct his disciples on yoga.

Mr. Sandeep Baid

Director

Is an MBA from University of Strathclyde, Scotland, specializing in marketing and is currently gaining exposure of the unique customer nuances of the varied markets. he is also involved in streamlining the finances of the group.

Mr. Bhanwarlal Baid

Director

Patriarch of the family & Chairman of the Group endorses chosen principles and values which Utkal follows. With his distinguished business and social credentials, he has led and safe-guarded the treasured Utkal culture. A born entrepreneur, he initiated with humble beginnings. But his zeal, sheer grit and robust ethics steered him through the times to continuing trust and success. Of course, after four decades of a distinguished business career and leadership of a diversified business group, his enthusiasm remains fresh as ever.

Mr. Amit Baid

Director

Is an MBA from prestigious IMT, Ghaziabad specialising in Finance and a CFA from ICFAI. He is driving innovation and technology in the group’s operations. He is also actively involved in the group’s marketing plans.

Mr. Sharad Baid

Managing Director

Mr. Sharad Baid is the Managing Director of Utkal Builders & has earned his Masters in Business administration from Bond University, Australia. He specialises in Finance and Information systems.By spearheading new initiatives in Utkal Builders, Mr. Baid has enhanced the framework for strategic planning and project development. In addition, he plays a crucial role in the corporate branding & project marketing of the Group.

Mr. Subhash Bhura

Director

The visionary with a mission and an opportunity – guru, his insights are the engines of innovation and new businesses. His passion for opportunities is only matched with his perseverance to bring them to life. He has been the torch-bearer and the agent of evolution at the group. He has also served as the president of CREDAI, Odisha (2010-11).