Tax Benefits You Can Avail by Investing in Apartments in Thrissur

Posted onMay 30, 2025

Smart home buyers ensure that tax considerations are an important part of their real estate investment strategies in Thrissur. This can be with regard to the tax payable on their income, or tax that is to be paid on profits made from property sales. 

Investing in real estate helps you build wealth and gain a steady monthly income, and also save tax. Read on to know how.

Tax benefit under Section 80C

If you have bought property with a home loan, you can claim tax benefits under section 80 C. This can be claimed on repayment of the principal amount, payment of stamp duty, and registration fees, which has to be paid on purchase of the property.

There is a maximum limit of 1.5 lakh rupees for claiming this deduction. This means that if your income falls in the 30% income tax bracket, you can save up to Rs. 45,000, if you choose the old tax regime for filing your returns. The new regime does not allow this deduction.

Additionally, if you want to claim the deduction, you should not sell the property you have purchased in the next five years; the entire deduction you claimed under 80C will be rolled back if you do sell the property.

To save even more tax, you can have a joint applicant on the loan - your spouse, partner, parent, or sibling; this way, both of you can claim deductions; so this means, you can each avail up to 1.5 lakh rupees each, or 3 lakh rupees in total.

Tax benefit under Section 24(b)

You can also claim tax benefits on the interest you pay to the bank on your home loan, and you have a maximum cap of Rs. 2 lakhs for this.

This can be claimed even if your house is under construction; once it is complete, you can claim exemptions within five equal instalments. Once the loan has been disbursed, you must complete the construction of the house within five years.

Section 24(b) also provides double tax relief if you have a co-applicant on your loan; which means you can claim up to 4 lakh exemption together.

Section 80EE First-time Homebuyers Deduction

First-time home buyers can claim an additional tax exemption under section 80EE, up to Rs. 50,000. There are some criteria to be satisfied, like loan amounts, property value limit, and so on, but this is an excellent opportunity for you to save tax on real estate in Thrissur.

Tax Benefits On Second Home Investment

Most people purchase a second house as an investment, from which they hope to earn some returns usually by renting it out. Here too, you can claim the same tax exemptions on your home loan, under section 80C and 24(b), on repayment of principal and interest. But you can also claim an additional tax deduction under section 24(a).

You can claim an exemption of up to 30% on your rental income; this will help you cover the cost of maintaining the property and cover other incidental expenses, while reducing your tax liability.

Capital Gains Exemption Under Section 54 

When you sell your property, whatever profit you make from it, is taxed. If you don’t want to pay tax, you need to invest the entire sale proceeds in a) real estate, or b) long-term government bonds as specified, which has a lock-in period of 5 or 7 years. This reinvestment must be done within two years of the sale; if you are constructing a new house, you get an additional year. If you have invested an equal amount of money a year prior to the sale of property also, you can claim this deduction.

You need to ensure that you should have had ownership of the property for at least two years for it to qualify as a long-term capital asset. Section 54 offers the much-needed tax relief so that investors can easily reinvest their capital and minimize punitive taxation.

Conclusion

While there are a host of things to consider when buying an apartment, financial considerations are the most important. Taxation is a major aspect of your finances, as non-payment or evasion can invite legal action. At Varma Homes, we make sure that every legal requirement is followed to the T, and can help connect you with financial companies or accountants to make the whole process smoother. Our projects have a reputation for superior construction, appealing design, excellent floor plans, innovative amenities, and more. 

Ready to invest smartly and save big on taxes? Discover premium Apartments in Thrissur with unbeatable tax benefits.Get expert guidance and maximize your returns today.

FAQs

What are the key tax benefits of buying apartments in Thrissur with a home loan?

You can claim tax deductions under:

• Section 80C: Up to ₹1.5 lakh on principal repayment, stamp duty, and registration charges.
  
• Section 24(b): Up to ₹2 lakh on interest paid on your home loan.
  
• Section 80EE: Additional ₹50,000 for first-time homebuyers (subject to conditions).
  

Can I claim double tax benefits if I have a co-applicant on my home loan?

Yes! If you have a co-applicant (like your spouse or parent), both can claim deductions individually under Section 80C and 24(b), doubling your tax-saving potential up to ₹3–4 lakh per year.

Are there tax benefits if I buy a second apartment in Thrissur for rental income?

Absolutely. You can claim:

• The same benefits under Section 80C and 24(b) for loan repayment and interest
  

30% standard deduction on rental income under Section 24(a) to cover maintenance and related expenses.