By Admin 
House Buying or Rent: There are many people who live in rented houses. So there are many people who think that they should have their own house. But some people get confused as to which is the profitable deal. Buying a house or living on rent. Let us tell you that this decision is not only about convenience but also about money. Often people buy a house out of emotions or remain confused after staying on rent for a long time. In many cases, paying rent proves to be more appropriate. So many times buying a house by taking a home loan becomes a way to create wealth along with tax savings. Let us tell you what is beneficial from the point of view of financial planning.
What are the benefits of living in a rented house?
The biggest benefit for those living in rented houses is in the form of HRA exemption. If HRA is included in your salary. So you can avail substantial tax exemption on rent basis. This exemption was quite effective in the old tax system. This discount can be more if you live in metro cities. Living on rent also gives you the freedom to change the location. It is easy to change house in case of job or transfer. Apart from this, the owner is responsible for property tax, maintenance and major expenses. .
How are tax benefits available on buying a house?
There are two major tax benefits available through home loan on purchasing a house. First, rebate on loan interest and second, deduction on principal amount. This reduces your taxable income. Living in your own home eliminates rental expenses and the EMI goes towards building a property. However, initially the expenses like down payment, registration and property tax seem heavy. The property is not sold immediately. Still, it becomes a strong asset in the long run. With proper planning, home loan can provide both tax savings and future security.
Which option is right for you?
The right option for you depends on your income, job stability, city and future planning. If the location of your job changes frequently. So renting makes more sense. But if the income is right. Have to stay in the same city for a long time and build wealth. Tax benefits are also to be availed. So buying a house may prove to be better.
Also read: Now there will be no jail for irregularities in income tax, the government has changed this rule.