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Proper tax planning reduces your tax liability, which also helps in saving for the future. Section 80C of the Income Tax Act, 1961, helps you to avail tax benefits of up to INR 1.5 lakhs in various investments made by you. Below is the list of all such investments, where you are allowed to receive the tax deductions under section 80C. This scheme falls under the equity mutual fund category, in which investments become eligible for tax benefits under section 80C. The tax deduction of up to INR 1.5 lakhs in a financial year can be availed. Unlike SCSS, ELSS is a market-linked instrument and does not guarantee any returns on the investments.
Although you can invest any amount in ELSS, the tax deduction is capped at INR 1.50 lakhs per year. Employer’s contribution of up to 10% of your salary plus dearness allowance towards NPS is eligible for tax deductions. The maximum deduction under this section is limited to INR 1.50 lakhs per year. The benefits under this section are available only to individuals and Hindu Undivided Families . As the name suggests, this scheme is designed to provide a bright future for India's girl child.
Final Thoughts on 80c Deduction
The maximum tax deductible for a home loan is listed below under specified sections of the Income Tax Act 1961. Please suggest if i can claim IT deductions in FY2013 on the basis of possession letter but without registering the flat under my name. Yes , House loan benefit can only be availed ,if property is in your name or jointly owned by you. Further as you are paying rent actually , you can also claim HRA benefit. If above condition are satisfied then you can claim House loan benefit in ratio of ownership.
But if we have only one house and if I have rented out the house, ALL interest paid (even if it is more than Rs. 1.5 Lakhs) is deductible from the rent received. Now, Since the construction of the new flat is delayed as per the construction schedule, the bank is not swapping the property papers of the loan since the LTV ratio is not favourable. They have agreed to transfer this once i make a few future installments on my own or prepay a certain amount back to the bank. Buying a second house by availing second home loan is not just a matter of great pride but can also be a wise investment. As the property buyer of a second house, you need to do a little homework to extract the maximum benefits that the law provides you.
There are 3 different aspects involved in repaying a Housing Loan.
In the case of you owning 2 house properties, you can avail this benefit as in below scenarios. Certain donations made to specified funds and institutions are eligible for benefits under this section. However, the 80C benefits are available only on the interest earned on the five-year post-office deposit schemes. Additionally, the returns are not impacted by market volatility.
The new house, where I'd be staying, I and my wife will claim the tax as mentioned by you . The house where the loan is cleared, my parents will stay and I will not get any rent on the same. I guess I can show that under loss of income on property. You can stay in any house or can occupy both at a time ,but in your case one of the house will be deemed to be let out and you have to shown rental value as income for that house. Both of you can claim interest on home loan in your house ownership ratio.If you are owner of the house 50-50,then you can claim interest in 50-50. 2) If both can claim the interest deduction then what would be the limit??
Section 24 (Tax benefit on interest paid):
Its flexi payment plan so I opted to pay bank only EMI (Principle+Interest) on disbursed amount. Section 80C and Section 24 can provide you with a deduction of Rs. 1,50,000 for home loan principal repayment and a deduction of Rs. 2,00,000 for interest payment. The stamp duty and registration charges paid on property purchases are eligible for 80C income tax benefits. Taking a housing loan to buy a house gives multiple tax benefits. Many are aware of the Rs. 2 Lakh deduction that is paid towards the interest part of the home loan.
If the property is let out on rent, then the entire interest paid on the home loan can be deducted even if that amount is more than 2 lakhs. However, you will have to show the rent received as taxable income. The deduction under Section 80EE can only be claimed by individual taxpayers on properties purchased either singly or jointly.
The maximum deduction is limited to INR 1.50 lakhs per annum. The SCSS is a scheme specially designed to address senior citizens' tax-saving needs. The government introduced this scheme for individuals whose age is 60 years old or above.
Now i wana knw whtr i cn give dis flat on rent and hw wil i show my rent income for IT purpose and whtr i can claim deduction under Section 80C on the rented house. I booked one flat in 2010, currently it is under construction. As the construction progresses the bank gives me the cheque every month. Currently i am paying the interest on the paid amount and it increases every month. How do i claim the interest amount under the tax exemption. Further for emi repayment you should open a joint account ,Issue home loan account cheque from joint account.
Below are the tax benefits you can avail in such scenario. EPF is available to salaried individuals whose basic monthly salary is more than INR 15,000. Minimum contribution by the employer and employee should be 12% of the basic salary plus DA to be eligible for tax benefits. Annual premium paid towards life insurance plans for you, your spouse, and your children is an eligible deduction under 80C. However, the deduction is available only if the premium is less than 10% of the sum assured .
It is pertinent to note here that a contract for a deferred annuity can be entered into with any person and not necessarily with an insurance company. Enter the amount invested in a term deposit of not less than 5 years with any scheduled bank. Below is a comparison on the various benefits Section 24 and Section 80C. The users should exercise due caution and/or seek independent advice before they make any decision or take any action on the basis of such information or other contents. The value of the property for which the loan has been taken should be less than Rs. 50,00,000. Before we explain these different sections, it’s important to know what the different components of your Home Loan are.
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