Friday, September 18, 2015

Tax Benefit on Home Loan Interest

 Tax benefit on Housing Loan Interest


1 The interest component in the EMI can be claimed as deduction from "income from house and property" under Section 24 of the Income Tax Act.

2 The maximum tax deduction allowed under Section 24 is `2 lakh for self-occupied property and if the property is not self-occupied, there is no maximum limit.

3 The interest payments for the year shall result in a loss under the head "income from house property" which can be adjusted in the same year against other heads of income including salary.

4 If the property is not completed within three years from when the loan was taken, then the interest benefit drops to `30,000.

5 The pre-construction interest can be claimed from the year when the construction is complete in five equal instalments.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

9.Axis Tax Saver Fund

10.BNP Paribas Long Term Equity Fund

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

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