Independent House/Villa

In India, ownership of a property gives you a sense of stability and dignity as the majority of the working-class community cherishes it as a dream. There is still a section of home buyers who desires to own a house of their own on a piece of land. Taking a cue from this, several developers have started to cash in on the concept of an Independent house/villa. 

What is an independent house/villa?

An independent house is mainly built on a piece of land and is understood to be a better investment option. It gives you the freedom to own the land and thus not share your rights with any one else.  

The residential villa will cost you much more than an apartment. Also, in an independent villa you pay for any and every amenity included in the construction whereas in an apartment you get some default amenities like security guard, power backup and elevators the cost for which is shared by all the members of the society. 

Thus, building a residential house entails a greater cost that buying an apartment. 

Why buy an independent house?

  • Better as long-term investment: Compared to flats, independent houses are better investment options in the long run.
  • Greater freedom: Not only you enjoy more privacy, you will also not have to share your land area with anyone else. 
  • Freedom of construction: You may construct the house as per your budget and requirements. You may rent out a portion or build a top floor in the future, which is clearly not possible in an apartment. 
  • Save on taxes: You can get a plot loan and a home loan to buy and construct your residential house. Consequently, you may save taxes on both principal and interest amount as per ITA, 1961. 

Tax benefits on independent house: 

Below highlighted are the tax benefits offered by the government to the buyers of independent houses/villa:

  1. The principal repayment of the home loan EMI is eligible for tax deduction under section 80C of the ITA, 1961 up to Rs. 1.5 lakh per year.
  2. The interest amount of the home loan EMI is eligible for tax deduction under section 24 of the ITA, 1961 up to Rs. 2 lakh per year if the property is self-occupied.

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