In the pursuit of smart and steady investments, more individuals are turning to compact real estate options like the pre-leased studio apartment in Pune. These properties are cost-effective, easy to manage, and offer guaranteed rental income from day one. But beyond the rental yields, there’s another strong reason these units appeal to investors: the range of tax benefits they can potentially unlock.
Whether you own a studio apartment Hinjewadi, a studio apartment Baner, or a furnished studio apartment in Wakad, understanding the tax implications can help you maximise returns and minimise liabilities. In this blog, we break down how tax deductions on interest, depreciation, and exemptions like HRA can apply to pre-leased studio apartments and what to consider before claiming them.
1. Home Loan Interest Deduction on Preleased Studio Apartments
If you’ve taken a home loan to buy a studio apartment, especially one that is pre-leased, you may be eligible for tax benefits under the Income Tax Act.
Section 24(b) allows for deduction of interest paid on the borrowed capital up to ₹2 lakh per annum if the property is let out or self-occupied.
For pre-leased studio apartments Pune, the entire interest paid on the home loan (no upper limit) can be claimed as a deduction, since the property is not self-occupied but rented.
This is especially beneficial for people purchasing studio apartments for sale in Pune's prime rental micro-markets like Hinjewadi, Wakad, Balewadi, or Kharadi, where tenant demand is high and rental income is assured.
2. Depreciation for Tax Purposes (For Business Owners and NRIs)
If you own the studio apartment in the name of a business entity or use it as a business asset, you can claim depreciation.
Under the Income Tax Act, depreciation can be claimed at 10% annually on the cost of building (excluding land).
This is useful for NRIs or investors who operate real estate as a business and report income under “profits and gains of business or profession.”
For instance, if you own multiple smart studio apartments Pune or furnished studio apartments Pimpri-Chinchwad and have set them up as part of a rental income-generating business, depreciation can significantly reduce your taxable profits.
3. Standard Deduction on Rental Income
Regardless of whether the studio apartment is pre-leased or independently rented, owners can claim a standard deduction of 30% on the annual rental income under Section 24(a). This covers maintenance and repair expenses.
Example:
If you receive ₹1,20,000 annual rent from a pre-leased studio apartment in Pune, you can deduct ₹36,000 (30%) as standard deduction without having to show actual bills.
4. HRA Exemption When Renting a Studio Apartment
Let’s say you’re renting a studio flat near Hinjewadi IT Park while also owning a studio apartment Kharadi that is leased out. You may still be eligible to claim House Rent Allowance (HRA) on your rental accommodation, provided:
The property you own is rented out.
You live in a different city or area for work purposes.
You pay rent for your current accommodation and have rent receipts.
This is particularly applicable to working professionals who have invested in eco-friendly studio apartments PCMC or budget-friendly shared studios in Wakad but live elsewhere.
5. Capital Gains Exemptions and Deductions
If you sell your studio apartment after 2 years of ownership, the profit qualifies as long-term capital gain (LTCG), which is taxed at 20% with indexation benefit.
To reduce or eliminate LTCG, you can reinvest the proceeds in:
Another residential property under Section 54F
Capital gains bonds under Section 54EC
This makes investing in affordable studio apartments Pune and holding them long-term a strategic tax-efficient decision.
6. GST and TDS Implications
While residential studio apartments are typically not subject to GST on resale, if you’re purchasing under construction from a builder, GST may apply.
Also, if the annual rental income exceeds ₹2.4 lakh, tenants (particularly companies leasing furnished studio apartments Wakad) may deduct TDS (Tax Deducted at Source) at 10%. You must file this in your tax returns and can claim credit for it.
7. Special Tax Considerations for NRIs
NRIs investing in studio apartments Hinjawadi, Baner, or Balewadi can also avail of most tax benefits applicable to Indian residents:
Interest on home loan deduction under Section 24(b)
Standard deduction on rent
TDS applicable on rental income received
However, NRIs must ensure that taxes are paid in India and must file returns to claim TDS refunds or carry-forward any losses.
Final Thoughts
A pre-leased studio apartment in Pune is not only a lucrative investment for consistent rental yield—it can also be a smart tax-saving instrument if structured correctly. From loan interest deductions to depreciation and capital gains planning, there are multiple ways to reduce your tax liability while growing your real estate portfolio.
Whether you’re an NRI looking to invest in luxury studio apartments Baner, a first-time investor exploring studio apartments for sale, or a FIRE enthusiast building passive income through furnished studio apartments Pimpri-Chinchwad, understanding these tax benefits can amplify your returns.
Visit Now - https://preleasedstudioapartments.com/
Company Name - Buy India Homes Digital Private Limited
Agent MahaRERA No - A52100019166
Contact No. - +91 8181817136