Home Renovation and it’s Tax Benefits

Online advertisements or TV advertisements of glamorous homes, often leave us with dreams of dreaming and decorating our sweet homes in a similar way.

And either repairing or remodeling a house is not cheap. This will require a significant amount of money, which can affect our monthly budget in such a way that would be unbearable for us. The cost of renovation can go up to millions of times and there is not always enough money to proceed with the plan.

Do not let the insufficiency of wealth reduce your aspirations to build your nest in the most delightful way. Personal loans have emerged as a great resource to meet your extra money requirement, without touching you on your savings. It is convenient to implement and repayable over a period of time, and is delivered over a short period of time.

Let us look at the major benefits of applying online for a personal loan to meet temporary financial constraints.

Easy Documentation –

Compared to other loans, the documents required for personal loans are minimal. If you are a pre-approved customer of the bank, you will not even need to submit documents. The loan amount is disbursed in the account, based on eligibility and the money required.

Multipurpose Loan –

Personal loan is also known as multipurpose loan, as money derived from personal loan can be used for many purposes. It is not limited to any specific use and resolves temporary shortages of funds.

Easy repayment options –

The tenure of repayment given by the lenders is mostly flexible and you can adapt the monthly installments as per your convenience. Typically, the repayment period starts at 12 months and can be extended to 60 months.

Easy application –

Applying personal loan is now possible only at the click of a button. You can go to the lender’s website and fill in the details of the form, and upload the necessary documents. You can also go to the bank branch and apply for the same.

Accelerated Disbursal –

If all documents are in place and if you are eligible for a loan, the lender will approve the loan application within a short period of time. If you are a pre-approved customer of the bank, the bank will approve the loan application immediately and the amount will be credited to the account.

No Leveling Against Debt –

Personal loan is an unsecured loan and does not require any collateral to be held as security. You do not have to mortgage any property to take advantage of the loan amount, which is usually the case with other loans.

The joy of living in your own dream house is incredible. A home is a place where we relax with our loved ones and spend the most memorable time. Changing your home, being the best place on earth to return is the aspiration of every person. But actually achieving this is a difficult task which involves high cost and maximum hassle. You may already be burdened with other debt loans and do not have enough savings left to proceed with this additional expense.

You can request a loan to renovate the house, adding additional costs and shoot down the monthly budget. However, another aspect of this is that personal loan for home renovation can help you save tax. This is what you should know about tax benefits on home renovation:

Under section 24 of the Income Tax Act, 1961, you can claim tax deduction on the interest component made for a home renovation loan for one year. For self-occupied property, a capping of Rs 30,000 per year is fixed. If your property is for rent, full interest will be allowed as a deduction.

However, to take advantage of such benefits, keep the invoice and bill incurred for this renewal cost as evidence to claim tax benefits. For self-occupied homes, if there is a major repair, those costs are considered “cost of improvement” for that particular property. If the property is ever sold in the future, it will in turn reduce taxable capital gains.

The cost of renewal is reduced by taxable capital gains, meaning that when the original renewal cost is adjusted for the price of inflation it will help reduce the tax liability.

If this sounds interesting to you in any way, you can choose Kotak Mahindra Bank Personal Loan as your personal loan partner to beautify your home.

With many benefits at its disposal, personal loans are therefore an ideal option for many consumers.

Kotak Mahindra Bank personal loan interest rates start at 10.50%. It does not let you compromise the important things of your life. Kotak Mahindra Bank’s personal loan can be taken to manage the finances to convert its new home into a dream home.


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