Top Real Estate Tax Benefits Every PSU Employee Should Know ?

Buying a home is one of the biggest financial decisions for any working professional. But if you are a PSU employee, the process becomes easier, smarter, and more rewarding—provided you understand the right benefits.

In this blog, we break down the top tax advantages, the role of credit score, and how you can save lakhs over your home loan journey.

Let’s dive in.

⭐ 1. Top 3 Real Estate Tax Benefits for Home Buyers

The government offers several tax deductions that can significantly reduce your financial burden. Here are the most important ones:

🔹 Section 80C – Deduction on Principal Repayment

You can claim up to ₹1.5 lakh per financial year on the principal amount you repay on your home loan.

This helps lower your taxable income right from the first year of your loan.

🔹 Section 24(b) – Deduction on Home Loan Interest

Home loan interest is usually the biggest part of your EMI.

Under Section 24(b), you can claim up to ₹2 lakh per year on the interest component.

This alone can reduce your tax outflow substantially.

🔹 Section 80EEA – Extra Benefit for First-Time Home Buyers

If you’re buying your first home, you may be eligible for an additional ₹1.5 lakh deduction on interest, over and above Section 24(b).

This makes home-buying far more affordable for new buyers.

⭐ 2. How Your Credit Score Affects the Cost of Your Home

Most buyers focus only on property price—but the actual cost of your home depends heavily on your credit score.

Here’s how credit score impacts your loan:

🔹 Credit Score 750+

• Lower interest rate
• Cheaper EMI
• Saves you lakhs over the full tenure
• Banks trust high-score borrowers and reward them with better pricing.

🔹 Credit Score Below 650

• Higher interest rate
• Costly EMI
• Higher total loan cost
• Even a small increase in interest rate can drastically raise your overall payment.

Conclusion:

A strong credit score is not optional—it’s a wealth-saving tool.

⭐ Final Thoughts

If you are a PSU employee planning to buy a home, these tax benefits and financial strategies can help you make a smarter and more rewarding decision.
Understanding your deductions and maintaining a healthy credit score can reduce your loan burden and bring long-term savings.

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