Table of Content
Further 1.5 lakh minus income from house property is deductible /adjustable in salary income also. As the loan is in joint name ,both of you can claim 1.5 lakh each as interest on house loan as deduction and can show house as self occupied even you are not residing in it. I would like to utilize the income tax provision of deducting complete interest for second house property. My brother and I have bought a house last year.
This is a good scheme for parents as it offers peace of mind. The retirement scheme is available for all salaried employees. The employer or the individual opens the account. The employer and employee must contribute 12% of the basic Salary + D.A if the salary is above ₹15,000. Employer’s contribution is not suitable for tax deduction under 80c. EPF allows you to save a portion of your wages.
Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.
Once these deductions have been made, you will be taxed as per the tax slab that you fall under. I have taken a home loan with husband as a joint applicant. Can we both claim income tax deduction of 1.5 L each under section 24 of house loan interest payment. Also i live far from my work place around , can i claim HRA benefit also? Yes , you can claim tax deduction of interest as well as deduction of house loan repayment u/s 80C. The National Bank for Agriculture and Rural Development offers rural bonds that are eligible for 80C tax benefits.
The 80C deductions list includes investments in NSC. It has a five-year lock-in period and currently offers a 6.8% rate of interest. In addition to your initial investment, interest earned on NSC is tax-free. Be mindful while making investment decisions as these are just the complimentary benefits you get for laying out your money. Don’t invest in the schemes for the sole purpose of tax saving but for accomplishing your financial goals and encountering unanticipated expenses. Upon making investments or incurring expenses under Section 80, employees should submit the respective proofs to their employers.
Terms and conditions for home buyers to avail of benefits under Section 24
Additionally, Indians, as well as Non-Resident Indians , are eligible for the tax deductions. This scheme is available for seniors who are 60 years and above. However, any senior citizen who opts for the voluntary retirement scheme can claim the tax benefits after 55 years of age. Any deposit account opened with a bank for five years is eligible for tax benefits under section 80C of the Income Tax Act, 1961. These bonds are issued by infrastructure companies and investments of up to INR 1.50 lakhs per year can be claimed for 80C tax benefits.
Particularly an individual or a Hindu Undivided Family is qualified for availing these tax benefits. Thus, the provisions of section 80C do not apply to a company or a firm. Besides, to claim the tax deductions under this section, one needs to produce proof of savings and investments in the products that he/she chooses. Section 80c (with a limit of 1.5 lakhs) allows repayment of housing loan principal among other tax saving options like insurance, PPF etc. Apart from 80C, Section 24 and Section 80EE provide additional benefits to borrowers. A top-up home loan is eligible for tax benefits under Section 80C and Section 24 if it has been utilised for acquisition/ construction of residential property or renovation of the said property.
Plan Tax & File ITR
I plan to take housing loan for a property which is in my father's name. The loan will be taken in my name and father will be co-applicant. In this case can i claim for income tax benefit for both principal and interest paid?
This allows employers to deduct income tax accordingly from employees’ salary. They can claim an additional deduction for their parents’ health insurance up to Rs 25,000 if the parents are less than 60 years of age. For parents aged more than 60 years, the deduction benefit increases to Rs 50,000.
Why does the govt offer tax benefit on home loan?
Remember that this has to be claimed in the same year of completion of construction. The house must not be sold in 5 five years since you take possession. If you do sell, the deduction you will be added to your income again and will become taxable. Maximum deduction allowed under this section is Rs.1,50,000. It is over and above the deduction of Rs.2,00,000 available under section 24 for interest paid in respect of loan borrowed for acquisition of a residential house property. The Government of India extends these benefits as a form of relief to borrowers, making home purchase more affordable.
This interest rate is guaranteed, and the gains are tax-free on reclamation after maturity. The Income Tax Act, 1961, contains many provisions that offer tax deductions and exemptions on home loans taken by individuals. Tax deductions can be availed on principal repayments and/or interest payments. Both principal and well as interest paid on home loans is eligible for tax deduction. Tax benefits towards home loan repayment are offered under section 80C of the Income Tax Act.
I am paying an interest of around 1.65L for this housing loan. I want to mention that the property and loan both are in our joint name... Repayment installments is being made from our joint account...
Employees claiming this deduction should provide a certificate of disability from prescribed medical authority to their employers. Section 80CCD allows employees to claim deductions up to 10% of their salary or equal to the contributions made by the employer towards the NPS. When an employer contributes to the employee’s NPS, the contribution amount is subject to tax deduction under section 80CCD. There is no threshold on the contribution amount. This deduction can be claimed in excess of Section 80CCD.
The NSC is a guaranteed income investment scheme available at any post office in India. This scheme's tenure is fixed at 5 years, and the current guaranteed interest rate is 8%. Investors can avail the tax deductions of up to 1.5 lakhs, as per the provisions of section 80C of the Income Tax act. However, the gains are taxable under this scheme. Also, the interest accrued for the first 4 years qualifies for exemption. Public Provident Fund or PPF, introduced in 1968, is one of the oldest tax-saving instruments in India.
You can claim a maximum of Rs. 1,50,000 under this section. So, the pre-construction period interest can be claimed as a deduction over a period of 5 years in equal annual instalments commencing from the year of acquisition or completion of construction. I have purchased a flat in mumbai in 2009 and it is rented for 9000RS/Month. You can avail one or more house loan benefit at a time . But you can show only one house as self occupied .
No comments:
Post a Comment