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You should be worried. Why? Because recession is going to hit soon. Lets say its because of 60% Indian market and 40% Global factors.Indian Factors :GDP is calculated as GDP=Private consumption+ gross investment + government investment + government spending + (exports - imports). So, in short, private consumption and gross investment is low, government spending and investment is average, and export growth is slow. Most of the industries are suffering due to variety of reasons.Markets are defined by demand and supply. In some cases, demand is not there like FMCG, Automobiles and some, where supply is getting interrupted like real estate, even though demand is there but unfinished project, bank defaults are hurting the real estate segment even more.I’ll try and cover some of the points mentioned above here.Liquidity Crunch - After the fall of IL&FS and other bank frauds, the NBFC(Non-banking financial Companies) sector has taken a hit. NBFCs play an important role in meeting the rising demand for credit, loans, and other financial services. Customers include both businesses and individuals—especially those who might have trouble qualifying under the more stringent standards set by traditional banks. Thus, they kept supplying market with the money for expansion, upgradation etc. But with NBFCs not available and banking sector not financing deals, most small to mid level companies are not getting loans for CAPEX and OPEX. Hence, production is low, cost cutting and fired workers.Automobile - With changes in engines from BS IV to VI next year and also due to focus of government on electric vehicles, the demand has hit to an all time low. With more than Rs 25000 crores of inventory lying in warehouses, auto OEMs have stopped manufacturing new cars, and more than 3–4 lakh employees(contract + permanent) getting fired, the situation is very bleak for this industry. Even government response has not been very stimulating. Also, the banks are also stringent with providing auto loans, hence overall, demand is not there.Banks - Because of scams like Nirav Modi, Mallaya, Mehul Chokshi and other multi thousand crores, the banks are now focusing on NPAs and tighter process. They are not providing funds to even large corporations and are following very stringent procedure.Real Estate - Real estate around India has taken a very bad hit because of demonetization and banking reforms like withdrawal of cash and scrutiny of Income Tax . Previously, real estate firms used to divert money to other project and other benami cash transactions, which they are unable to do and now, they dont have money to complete their projects. Take the case of Amrapali, JP Infra etc. More than 10 lakh home buyers are suffering. Real estate also impacts steel, cement and many other industries. So, impact on real estate is impacting all. And so far, government is distancing away from this issue.Demonetization - I dont know, if demonetization was good or bad for the country but it was definitely bad for small and mid segment companies and also for the unorganized sector which amounts to more than 70% employment in India. Small-mid tier segment and unorganized sectors works mostly on cash transaction and with DeMo it took a hit.Angel Tax - Angel tax is levied when a privately-held company raises funds at a rate higher than its “fair valuation.” Currently, India charges 30% in angel tax. Over the past several months, many Indian startups have received tax demands with high penalties from the income tax department. The current law presumes guilt and more often penalises the genuine investor and entrepreneur. This has caused irreparable damage to the startup ecosystem in India as angels are putting their money elsewhere and entrepreneurs are having a hard time finding funds.Tax on Foreign Portfolio Investors and High worth Individuals - On July 5, the finance minister proposed to increase the surcharge on income tax of individuals earning between Rs 2 crore (Rs 20 million) and Rs 5 crore (Rs 50 million) to 25% from 15% and a hike in surcharge to 37% from 15% on individual taxpayers making more than Rs 5 crore. This also included FPIs in some cases. This tax proposals in the Budget for FPIs and the super rich is spooking the market sentiment. Hence FPIs are withdrawing the money from Indian Market.Change in Technology - Indian IT industry is one of the largest blue collar job employers in India. Due to new technologies and automation, most of the industry is facing profitability issues, which is leading to job cuts.Private Consumption - Growth in India's fast moving consumer goods (FMCG) sector is declining as lower spending in urban centres and slowdown in rural growth crimp consumption. Value growth in the FMCG space in the April-June quarter of 2019 dropped to 10% from a year ago. It was also the third consecutive quarter of slowdown. Tough market conditions, backed by lower spending by households, and concerns over a spike in inflation rate have hurt this industry.Exports and Imports - Export sectors that showed positive growth in the last july 2019 included chemical, iron ore, electronics, marine products and pharmaceuticals. However, shipments of some key sectors recorded negative growth, including gems and jewellery (- 6.82 per cent), engineering goods (- 1.69 per cent) and petroleum products (- 5 per cent). Cumulatively, during April-July 2019, exports dipped 0.37 per cent to $107.41 billion, while imports contracted by 3.63 per cent to $166.8 billion. So exports are not growing at a pace as they should be and imports like oil and gold, being a factor of global market changes from time to time.Other Reasons - From manufacturing to services to agriculture to industrial growth is seeing very slow growth and even negative in some cases. Those who say GDP is better, its a faulty figure as shown in media. With none of the sectors growing,except for government expenditure and some large multinationals, there is no case wherein GDP of India is even close to 6.5 . Some of the top most economist in India and worldwide are pointing to the flaws in current government functioning. Most of the micro and macro economic factors are overlooked, i guess.With BJP coming to power in 2019 with absolute majority, a better budget supporting different industries was expected, but this budget was nothing close to what is required in current scenario. Currently, no factor in GDP calculation is looking strong.Global Factors - Global factors leads to volatility and affects demand, supply and borrowing in international market. Some of the major global factor include US-China trade war, US Iran face-off, China slowdown, Hong Kong protests and Brexit to name a few. All these factors leads to investors pulling their money out from developing economies and investing in safe products like gold or US dollar. Trade imbalance, volatile market, contracting economies are some of the other effects. Businesses are impacted worldwide.All these factors and impending recession is cause for worry. Hopefully, Indian government now focus more on economy and works quickly to support the market.Note : This is as per my understanding. Looking forward for more discussion on the same.Edit 1 : Thanks Anubhav Verma for the edit.Edit 2 : Thanks guys for the overwhelming response. Really appreciate you taking your time out and reading my answer. But i would like to point out that it was not my intention to scare anyone, but one should be aware of whats happening. I am no economist, but i read and from that i get information. Perception differs from person to person. And as far as our country is concerned, we have stood, time and again, against the most difficult scenarios and will do it again.Edit 3 - FM Nirmala Sitharaman announced that section 56(2) (viib) of income tax act 1961 would not be applicable to startups registered under DIIPT. Thanks Gaurav Fatwani for the edit. FM has announced some good initiatives but the issue will be with consumer confidence.CheersThanks,Shraiyans

Every individual holds a dream in his life of owning his house without any other person owning it with him. To accomplish this dream for those who can’t afford to have their own house on their own go for various funding options. One of the options people usually go for is a home loan for the monetary funding for their houses. Home loans are the monetary funding granted by the bank/ financial institution/ NBFC to an individual for funding his need to purchase a new home against some terms and conditions. Now, many people are aware of the charges and the different things about home loan and what all to do. Yet, some people haven’t discovered the benefits they can avail when they go for a home loan. So, here are a few of the tax benefits by the government that an individual can avail while opting for a home loan.Now, the tax benefit on the home loan is to be claimed while the repayment process of the home loan. The repayment process is bifurcated into two different things while availing the tax benefit, i.e.· Repayment of the principal amount· Repayment of the interest amountWe would be covering both the areas separately to have a clearer image of the tax benefit on the home loan. The first aspect we are going to show the light upon is the repayment of the principal amount.· REPAYMENT OF THE PRINCIPAL AMOUNTThe law which supports the deduction of tax on the repayment of the principal amount is the Section 80C of the Income Tax Act under which it is stated that the amount paid by any individual or HUF (Hindu Undivided Family) on the principal amount of the home loan out of it 1.5 lakh rupees should be deducted for tax benefit.The deduction on the tax is available on the payment basis irrespective of the year for which the payment has been made. Also, the amount paid as stamp duty and registration fees are allowed under tax deduction even if the assessee has not taken up the loan. Also not to forget, the tax that has to be deduced out of the repayment of the principal amount is allowed only after the completion of the construction of the home. No deduction of the amount will be made if the construction hasn’t completed. The person who is paying the loan can avail the benefit of the tax deduction of the interest paid at the time of the construction in 5 equal instalments. Also, if the person who has taken the loan sells the property in 5 years then all the above deductions will be void,· REPAYMENT OF THE INTEREST AMOUNTThe laws which strengthen the deduction of tax on the repayment of the interest amount is Section 24 and Section 80EE (for first time home loan buyers). In the first law i.e. the Section 24 the homeowners can avail the tax benefit of Rs. 2 lakhs on the interest of the home loan taken with any financial institution or bank and can reduce the tax amount. The same thing will also happen if the house is vacant or rented to another person then also the amount of the interest is deducted from the tax of the person who has taken up the loan.Also, if you want to claim the tax deduction on the interest rate that you are paying for the loan of your home your home needs to be constructed fully in 5 years since the day the loan amount was taken from the financial institution. If fail to do so then the deduction on the tax of the interest amount of the loan will be only INR 30,000. Not to forget the loan should be taken for the purchase or construction of a new property. The same thing applies to this law as well that if the house is under construction and the loan is taken the tax benefit cannot be availed during that period. The interest that is paid during this time can be claimed as atax benefit in 5 equal instalments from the year the construction is completed. Earlier there was no limit on the deduction of the tax amount in this case but now the amendments have been made and the amount has been locked at Rs. 2 lakhs.The third law that powers up the tax benefit are the Section 80EE of the Income-tax Act on the interest paid on the home loan by the owner for the first time. This law is applicable to the owners who are taking up the loan for the first time. Also, this dedication can be claimed until the whole amount of the loan is paid. The deduction is exclusively introduced for those people who pay the interest on their home loans up to the INR 50,000 in a single financial year.Some of the peculiar features of this law are that it is exclusively available for individuals and no other bodies those who have taken aloan from a particular financial institution. The deduction is made over and above the INR 2 lakhs limit granted under the Section 24 of the Income Tax Act. The deduction is only possible if the valuation of the house is INR 50 lakhs or less and the loan amount of INR 35 lakhs or less. The loan has to be sanctioned by a financial institution or a housing finance firm. The period mentioned for this deduction to be in action is from 1stApril 2016 to 31st March., 2017. The loans sanctioned in this period would be considered worthy of getting this deduction for individuals.Also, when the loan is sanctioned it is mandatory that the individual must not own any other kind of property. Initially, when deduction was introduced under Section 80EE, the amount was INR 1 lakh but then it was deducted to INR. 50,000.So, while opting for a home loan it is not only necessary to have the knowledge about the different interest rates and lenders and the amount and compare it. But also, there needs to be knowledge about the government benefits.

Every individual holds a dream in his life of owning his house without any other person owning it with him. To accomplish this dream for those who can’t afford to have their own house on their own go for various funding options. One of the options people usually go for is a home loan for the monetary funding for their houses. Home loans are the monetary funding granted by the bank/ financial institution/ NBFC to an individual for funding his need to purchase a new home against some terms and conditions. Now, many people are aware of the charges and the different things about home loan and what all to do. Yet, some people haven’t discovered the benefits they can avail when they go for a home loan. So, here are a few of the tax benefits by the government that an individual can avail while opting for a home loan.Now, the tax benefit on the home loan is to be claimed while the repayment process of the home loan. The repayment process is bifurcated into two different things while availing the tax benefit, i.e.· Repayment of the principal amount· Repayment of the interest amountWe would be covering both the areas separately to have a clearer image of the tax benefit on the home loan. The first aspect we are going to show the light upon is the repayment of the principal amount.· REPAYMENT OF THE PRINCIPAL AMOUNTThe law which supports the deduction of tax on the repayment of the principal amount is the Section 80C of the Income Tax Act under which it is stated that the amount paid by any individual or HUF (Hindu Undivided Family) on the principal amount of the home loan out of it 1.5 lakh rupees should be deducted for tax benefit.The deduction on the tax is available on the payment basis irrespective of the year for which the payment has been made. Also, the amount paid as stamp duty and registration fees are allowed under tax deduction even if the assessee has not taken up the loan. Also not to forget, the tax that has to be deduced out of the repayment of the principal amount is allowed only after the completion of the construction of the home. No deduction of the amount will be made if the construction hasn’t completed. The person who is paying the loan can avail the benefit of the tax deduction of the interest paid at the time of the construction in 5 equal instalments. Also, if the person who has taken the loan sells the property in 5 years then all the above deductions will be void,· REPAYMENT OF THE INTEREST AMOUNTThe laws which strengthen the deduction of tax on the repayment of the interest amount is Section 24 and Section 80EE (for first time home loan buyers). In the first law i.e. the Section 24 the homeowners can avail the tax benefit of Rs. 2 lakhs on the interest of the home loan taken with any financial institution or bank and can reduce the tax amount. The same thing will also happen if the house is vacant or rented to another person then also the amount of the interest is deducted from the tax of the person who has taken up the loan.Also, if you want to claim the tax deduction on the interest rate that you are paying for the loan of your home your home needs to be constructed fully in 5 years since the day the loan amount was taken from the financial institution. If fail to do so then the deduction on the tax of the interest amount of the loan will be only INR 30,000. Not to forget the loan should be taken for the purchase or construction of a new property. The same thing applies to this law as well that if the house is under construction and the loan is taken the tax benefit cannot be availed during that period. The interest that is paid during this time can be claimed as atax benefit in 5 equal instalments from the year the construction is completed. Earlier there was no limit on the deduction of the tax amount in this case but now the amendments have been made and the amount has been locked at Rs. 2 lakhs.The third law that powers up the tax benefit are the Section 80EE of the Income-tax Act on the interest paid on the home loan by the owner for the first time. This law is applicable to the owners who are taking up the loan for the first time. Also, this dedication can be claimed until the whole amount of the loan is paid. The deduction is exclusively introduced for those people who pay the interest on their home loans up to the INR 50,000 in a single financial year.Some of the peculiar features of this law are that it is exclusively available for individuals and no other bodies those who have taken aloan from a particular financial institution. The deduction is made over and above the INR 2 lakhs limit granted under the Section 24 of the Income Tax Act. The deduction is only possible if the valuation of the house is INR 50 lakhs or less and the loan amount of INR 35 lakhs or less. The loan has to be sanctioned by a financial institution or a housing finance firm.Also, when the loan is sanctioned it is mandatory that the individual must not own any other kind of property. Initially, when deduction was introduced under Section 80EE, the amount was INR 1 lakh but then it was deducted to INR. 50,000.So, while opting for a home loan it is not only necessary to have the knowledge about the different interest rates and lenders and the amount and compare it. But also, there needs to be knowledge about the government benefits.