Important points to know about repayment of your home loan

Here are five important points which you need to know about the repayment of home loan.

Section 80C of the Income Tax Act
The principal repayment component in the Home Loan EMI is allowed as deduction under Section 80C of the Income Tax Act.

Maximum Tax Deduction: Rs 1.5 lakh
The maximum tax deduction allowed under Section 80C is Rs 1.5 lakh, which includes investments in other instruments also.

Deduction is allowed after completion of construction
The deduction is allowed only after the construction is complete and completion certificate is awarded to the buyer.

Registration charges are also allowed to be claimed for deduction
Payment made towards stamp duty and registration charges are also allowed to be claimed for deduction under Section 80C in the year in which payment has been made.

What will happen if assesse transfers the property within 5 years?
If the assesse transfers property on which he has claimed tax deduction under Sec 80C before 5 years, deduction claimed shall be deemed as income in year that the property was sold and taxable accordingly.

Homebuyers Road Map – Tips for first-time homebuyers

5 tips for first-time homebuyers if You’ve decided to go for it. Buying a home can be thrilling and nerve-wracking at the same time, especially for a first-time homebuyer. It’s difficult to know exactly what to expect. The learning curve can be steep, but most of the issues can be resolved by doing a little financial homework at the outset.

Take these five steps to help make the process go more smoothly.

Check your credit
The homebuyer’s credit score is among the most important factors when it comes to qualifying for a home loan these days. In addition, the standards are higher in terms of what score you need and how it affects the cost of the loan.

To get a sense of where your credit stands, go to to get your credit report by paying the required fee. Scour the reports for mistakes, unpaid accounts or collection accounts.

Just because you pay everything on time every month doesn’t mean your credit is stellar, however. The amount of credit you’re using relative to your available credit limit, or your credit utilization ratio, can sink a credit score.

The lower the utilization rate, the higher your score will be. Ideally, first-time homebuyers would have a lot of credit available, with less than a third of it used.

Repairing damaged credit takes time and money, if you owe more than lenders would prefer to see relative to your income. Begin the process at least six months before planning to Buy a Home.

Evaluate assets and liabilities
So you don’t owe too much money and your payments are up to date. But how do you spend your money? Do you have piles of money left over every month, or are you on a shoestring budget?

A first-time homebuyer should have a good idea of what is owed and what is coming in.You should understand a little bit about monthly cash flow.

If you were a first-time homebuyer and wanted to do everything right, you would probably try to track your spending for a couple of months to see where your money was going.

Additionally, buyers should have an idea of how lenders will view their income, and that requires becoming familiar with the basics of mortgage lending.

For instance, some professionals, such as the self-employed or straight-commission salesperson, may have a more difficult time getting a loan these days than others.

A stated income loan was available to wage earners in previous years, but today’s standards are much more stringent. Self-employed or independent contractor will need a solid two years’ earnings history to show.

Government to push for passage of GST and Real Estate Bills

India Government will make a fresh bid to pass crucial bills on GST and real estate in the last week of the Winter session amid signs of some thaw with Congress on the key economic reform measure.

The legislative and financial business proposed next week includes a discussion on the issue of price rise in both Houses with emphasis in Rajya Sabha on rising price of essential commodities, including foodgrains in the country.

A discussion is also likely on the issue of “growing intolerance endangering the unity and diversity of the country”.

While six bills each have been passed and introduced in Lok Sabha, the Rajya Sabha has passed only one bill.

10 Bills passed by Lok Sabha are still to be taken up in Rajya Sabha. In the Lok Sabha, Government has proposed to take up nine items of legislative and financial business during next week, a statement by Parliamentary Affairs Ministry said.

Of these, time has been allotted for seven items. A heavy agenda of 16 items is due to be taken up in Rajya Sabha which lagged behind Lok Sabha in transaction of business this week due to disruptions and forced adjournments.

Four hours have been allotted for the passage of the GST bill, three hours for Real Estate bill and two hours for anti-graft measure, the Whistleblower Bill.

Prospects of a forward movement on GST appeared in sight yesterday with the government giving some proposals to the Congress and expecting a response by Monday when Parliament meets again with just few working days left for the Winter Session to conclude.

A meeting of Congress leaders is being held on Sunday in which the party top brass will take a call on the proposals, which could pave the way for the passage of the GST bill.

External Affairs Minister Sushma Swaraj, who travelled to Pakistan on December 8, is also expected to make a statement on Indo-Pak ties in Parliament on Monday.

“Swaraj will make a statement on her recent visit to Islamabad and developments relating to ties between India and Pakistan in both the Houses of Parliament during the next week of Winter session of Parliament.

“This is one of the major agenda items for this week,” a release by the Ministry of Parliamentary Affairs said.

The government has put the GST Bill and Real Estate Bill on top of its legislative agenda in next eight days of Winter Session.