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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.
It is a long-term retirement savings option and has a minimum tenure of 15 years . The investment made in the PPF account is eligible for the tax deduction of up to INR 1.5 lakhs. The maximum deposit limit is also INR 1.5 lakhs; thus, one can claim the entire amount as an exemption under section 80C.
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Further you should request your employer to release salary through bank and issue a salary statement. You have not provided complete income details . If you have house property income and salary income then use itr-1. I took a home in my native place in 2006 and took housing loan for the same and given it for rent.
Since this house is your second house this house will be treated as deemed to be let out and you have show reasonable value of notional rent income for March 2012. Now, I purchased one more flat by home loan in Bangalore and residing there. I am paying another 1.8L interest for the same. Under income tax act "right to own a property" is also a capital asset. Dear sir, I'm constructing a house where EMI will commence from Jun'12 though my occupancy starts from Dec'12. At the same time, I'm paying EMI on my current residence where I'm co-applicant along with my father.
Terms and conditions for home buyers to avail of benefits under Section 24
Post-office time deposit schemes are like bank FDs with maturities between one and five years. The present rate of interest is 8.5% and the entire corpus including interest is tax-free if you withdraw it five years after continuous service. Any investment made in government-notified long-term infrastructure bonds is eligible for deduction up to INR 20,000. Mobile-based solution for small business owners and their customers to enable recording of credit/payment transactions digitally across the country. Get your personal eCA to do tax filing for you.
However, there are a few conditions that have to be satisfied if you want to allow this benefit. The most substantive benefits of a home loan are provided by Section 24, which provides the following benefits. You can have as many home loans in India as you need, as there is no law barring you from servicing only one home loan at a time.
Deductions under Section 80EEA
These home loan tax exemptions can only be claimed to purchase houses with a stamped value of up to Rs. 45 Lakh. Homeowners can claim the benefits on loans availed till 31st March 2022. Thus, borrowers will be able to claim a maximum income tax deduction of Rs. 7 Lakh. In the above section, we have discussed how a home buyer can avail of deductions under Section 80C for principal repayment and Section 24 for interest payment. Apart from the tax deductions, homebuyers can currently benefit from low home loan interest rates. Most financial institutions are providing home loans in the interest rate range of 6.5% to 7.0%.
Only those buyers can claim benefits under Section 80EEA who are not claiming deductions under Section 80EE.3. Property value should not exceed Rs 45 lakhs.4. Carpet area of the unit is limited to 60 sq metres in mega cities and 90 sq metres in other cities.5. The loan should have been taken from a bank or housing finance company and not from friends or family members. Section 24 also allows buyers to avail of deductions, even if the buyer has used fund from his own sources to make the purchase, without seeking any home loan. Under the section, a flat 30% deduction on the net annual value of a property is available to the owner, if the house is purchased entirely using the buyer’s personal funds. However, this rebate will not be available if the property is self-occupied, since such properties do n0t have any net annual value under the existing tax laws.
Section 80EE: Interest on Home Loan for first-time home buyers
Apart from the exemption on the principal amount, Section 80C provides a deduction on stamp duty and registration charges as well. Section 80C provides a tax deduction for other types of investments as well and the total tax deduction allowed under this section is capped at a maximum amount of ₹ 1.5 lakhs. Under Section 80C, you can get a tax deduction on the annual principal repayment made for a loan borrowed for the purchase or construction of a house.
If you sell the property within five years from the end of the financial year from which you took possession of the property, you will not get the benefit of the tax deduction. If you have previously availed of a tax benefit, you will need to show it as income in the assessment year of the sale of the property. Premiums paid for a home loan protection insurance plan are tax deductible under section 80C of the Income Tax Act, 1961 only if the borrower makes repayment. Under specific circumstances, where the lender finances such an insurance plan and the borrower repays via loan EMIs, deductions are not allowed. I have constructed a two floor house by taking housing loan jointly with my wife and house/property is in name of both. My wife is not working and don’t have any other income.
This is why there has been a long-standing demand that the deduction limit under Section 80C be increased, in order to justify the vast number of investment/expenditures it covers. The assesse should not own any residential house on the date of sanction of loan. Funds provided to an individual/entity for construction, extension or renovation of a residential property is called a Home Loan. I pay the Greater Noida Authority half yearly installments by myself - which constitutes the principal and interest component.
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.
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