By introducing an additional deduction of Rs 50,000 in the Budget 2016 proposal, Finance Minister Arun Jaitley has given some reason to cheer to the first time home buyers.
This additional deduction has been given on interest for loan up to Rs 35 lakh, provided the house value doesn't exceed Rs 50 lakh.
An additional deduction was much awaited as the costs of housing units have increased much over the recent years.
A home buyer in India is entitled to claim both the interest and principal components of home loan repayments for tax benefits. Currently interest payable on a 'self-occupied' house is subject to a maximum deduction of Rs 2 lakh under the head 'Income from House Property', under Section 24(b).
Taxpayers and industry experts were expecting the government to increase the tax deduction limit for housing loans, especially in metropolitan cities, by about Rs 1 lakh to Rs 3 lakh as the current limit of Rs 2 lakh is insignificant.
Besides interest, the portion of one's EMI which goes towards principal repayment is allowed to be claimed under Section 80C. This amount can be claimed within the overall limit of Rs 1,50,000 under Section 80C.
Tax experts and home buyers were also urging the government to look at carving out a separate deduction for principal re-payment of housing loan, as the principal paid is currently clubbed under Section 80C with other tax-saving instruments, which effectively does not provide significant tax relief to the home buyer. The demand, if met, would leave behind a higher disposable income in the hands of the borrowers of home loans and also encourage investment in the realty sector.
This additional deduction has been given on interest for loan up to Rs 35 lakh, provided the house value doesn't exceed Rs 50 lakh.
An additional deduction was much awaited as the costs of housing units have increased much over the recent years.
A home buyer in India is entitled to claim both the interest and principal components of home loan repayments for tax benefits. Currently interest payable on a 'self-occupied' house is subject to a maximum deduction of Rs 2 lakh under the head 'Income from House Property', under Section 24(b).
Taxpayers and industry experts were expecting the government to increase the tax deduction limit for housing loans, especially in metropolitan cities, by about Rs 1 lakh to Rs 3 lakh as the current limit of Rs 2 lakh is insignificant.
Besides interest, the portion of one's EMI which goes towards principal repayment is allowed to be claimed under Section 80C. This amount can be claimed within the overall limit of Rs 1,50,000 under Section 80C.
Tax experts and home buyers were also urging the government to look at carving out a separate deduction for principal re-payment of housing loan, as the principal paid is currently clubbed under Section 80C with other tax-saving instruments, which effectively does not provide significant tax relief to the home buyer. The demand, if met, would leave behind a higher disposable income in the hands of the borrowers of home loans and also encourage investment in the realty sector.
-----------------------------------------------
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds
Top 10 Tax Saving Mutual Funds to invest in India for 2016
Best 10 ELSS Mutual Funds in india for 2016
1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Franklin India TaxShield
4. ICICI Prudential Long Term Equity Fund
5. IDFC Tax Advantage (ELSS) Fund
6. Birla Sun Life Tax Relief 96
7. DSP BlackRock Tax Saver Fund
8. Reliance Tax Saver (ELSS) Fund
9. Religare Tax Plan
10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 Tax Saver Mutual Funds Online
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
---------------------------------------------
Leave your comment with mail ID and we will answer them
OR
You can write to us at
PrajnaCapital [at] Gmail [dot] Com
OR
Leave a missed Call on 94 8300 8300
-----------------------------------------------
0 comments:
Post a Comment