Kar Se Ghar is a phrase created by CA Sudhir Kaushik (CEO of Taxspanner.com) to motivate taxpayers (especially salaried individuals) to buy a home through a home loan with the longest tenure and rent it out. This one financial decision helps employees create wealth up to 20 times their CTC over the next 20 years through disciplined monthly investments in the form of EMIs.

The beauty of "Kar Se Ghar" as a wealth creator is that it is independent of your employer's salary structure, age, and income.

We noticed that 85% of taxpayers filing through Taxspanner are not claiming home loan interest deductions due to the misconception that they are incapable of paying EMIs. However, EMIs can be supported significantly by tax savings and rental income, provided the right home value, location, loan amount, and tenure are chosen.

If you keep paying higher taxes, the government will not provide you with a pension. However, if you build wealth, you will have a significantly higher retirement corpus.

one can claim tax deduction of up to Rs 2,00,000 interest paid on a housing loan in a financial year. Under the new Section 80EEA, first-time homebuyers with loans of up to Rs 35 lakh can claim an additional deduction of Rs 1.5 lakh for the interest paid provided the value of the house does not exceed Rs 45 lakh. This deduction is over and above the Rs 2 lakh deduction for home loan interest under Section 24.

Example:-

Mr. Wealthy's CTC = 20 lakh

Buy Value of Hoiuse = 60 lakh (3 times of CTC)

Appreciated Value of House = Rs.3.36 cr. (9% of appreciation rate)

Just paying 10% of the value of the house in 20 years = 3376786 (EMI@9%)