Tax Benefits You Can Avail by Investing in Apartments in Trivandrum

Posted onJun 05, 2025

Let’s face it, everyone loves to save tax; even if the income tax exemption limit was raised to a whopping 15 lakh rupees in the last budget. As a serious investor, tax benefits are likely to be one of your top real estate investment strategies in Trivandrum. Several government bonds and charitable donations offer tax relief; you can also avail significant exemptions on tax when you buy apartments. 

Of course, you do have to pay a certain amount of tax on real estate in Trivandrum; but there are many ways in which you can get relief. Let’s see how:

Section 80C

If you’ve taken a loan to buy the flat you can claim deduction in your repayment of the principal, under Section 80C of the Income Tax Act of 1961, even on stamp duty and registration fees, subject to a limit of Rs. 1.5 lakh. By choosing the old regime to file your ITR, you can save up to 45,000 rupees even if you are in the 30% taxation category.

However, for this you need to own the property for at least 5 years. If you sell it within this time, the deductions you availed will be reversed.

You can get double the benefits if you have a co-applicant on the loan, like your spouse, partner, sibling, etc; both can get a deduction of up to 1.5 lakhs each.

Section 24(b)

You can also save tax on the interest segment of your EMI, up to a max amount of Rs. 2 lakhs. This deduction can be claimed even if the apartment you purchased is still under construction. You just need to ensure that the construction must be completed within the next 5 years of availing the home loan to get this benefit. Having a co-applicant on the loan is beneficial here too, as both can claim tax deductions. 

Section 80EE 

First-time homebuyers can claim a further exemption of Rs. 50,000 under Section 80EE of the IT Act. You need to fulfil certain criteria like property value cap, loan amounts, etc. This is an excellent tax-saving facility available for real estate investors.

Section 24(b)

In case you have surplus funds you can also buy a second apartment and rent it out to earn a steady monthly income. If you are buying it on loan, all the tax benefits available under 80 C and 24(a) are available to you when you are buying the second home as well. You get an additional benefit: your rental income can be offset against the interest paid on the home loans so that you can claim further deductions. You can claim up to 30% of the rental income to cover property maintenance costs.

Section 54 

When you sell your apartment and make a profit, it is called capital gains; you are liable to pay tax on this profit. But there are ways to save on the capital gains tax:

• Invest the entire proceeds of the sale (not just the profit) in another property. This must be done within two years of selling your first property, or three years of constructing a new house; you can also claim this exemption if you have bought some property of that value a year before selling the apartment.
• Invest the entire proceeds in specific government bonds that have long lock in periods, which is usually 7 years.

Remember that for it to be considered a ‘capital asset’, you should have had ownership of the property for at least two years; it is the profit made on sale of such assets only, that is called capital gains.

Conclusion

Undoubtedly, financial aspects are the most critical things to consider when buying an apartment, and tax is a huge part of that. But at Varma Homes, we can assure you that you don’t have to worry about anything else when you purchase one of our magnificent 2, 3, or 4 BHK flats in any of our outstanding projects located in the best residential neighbourhoods in Trivandrum. Featuring excellent construction and design, we offer some of the most innovative amenities you have come across. All our projects are RERA certified, making them in high demand by discerning home buyers.

Ready to enjoy unmatched tax benefits while owning your dream home? Explore our RERA-certified Apartments in Trivandrum today and turn your investment into smart savings.

FAQs

What are the tax benefits of buying apartments in Trivandrum?
When you invest in apartments in Trivandrum, you can claim deductions under multiple sections like 80C (principal repayment and registration), 24(b) (interest on home loan), and 80EE (for first-time buyers). You may also save on capital gains tax under Section 54 when reinvesting in another property.

Can I claim tax deductions if the apartment is still under construction?
Yes, under Section 24(b), you can claim up to ₹2 lakh on interest paid for under-construction apartments, provided the construction is completed within 5 years of availing the loan.

Are there additional benefits if the apartment is co-owned?
Absolutely. If you purchase the apartment in Trivandrum with a co-applicant (like your spouse), both of you can claim individual deductions up to ₹1.5 lakh under Section 80C and ₹2 lakh under Section 24(b) each, doubling your tax-saving potential.