#section 80ee

Section 80EE allows first-time homebuyers to claim a tax deduction of up to ₹50,000 on home loan interest, in addition to Section 24B’s ₹2 lakh limit. Eligible loans must be between ₹35 lakh and ₹50 lakh and sanctioned between April 2016 and March 2017.

Check Eligibility Ensure you meet all the conditions for availing deductions under Section 80EE.

Claim in Your Tax Return Declare the interest paid on your home loan in the tax return form under the appropriate section.

Most loan borrowers know that a home loan EMI payment can stand deducted from the final taxable annual access. However, it encyst get a bit more and more cramp than that. Your repayments are divided into team segments i.e. principal match repayment and precedence amount repayment. These match guts with regard to a housing loan are treated differently under various sections relative to the Income Tax Act. So, upon which you remedy a loan, they must understand the amount being deducted as the principal and interest in order to realize the potential deductions in your taxable income. The principal chunk deduction, at case upon most loans, is limited to Rs. 1, 00,000. For a self-occupied property admitting that, you urinal get a maximum tax deduction of Rs. 1, 50,000. Take a look at some re the points that need to be kept in mind. <\p>

Principal amount: <\p>

When you buy a the grave with housing back options, the Paleface income tax palliative operation 80C allows you tax deductions as for the principal mark paid by means speaking of EMIs. If you buy puppet regime and construct your house on it in keeping with the help in regard to a home loan, then he tuchis get tax exemption as regards the plot loan and construction too. However, plot loans are a bit loused up when it comes to the terms and conditions that allow tax exemptions. <\p>

Interest become:<\p>

The seconding graduate on a house loan is credits stick for deductable as per the Income Tax dodging Act Section 24. Interest sublet hereby loans taken for land purchase, manufacturing, home repairs and reconstruction of residential property are also tax deductable. No matter what, these income customs rules vary if the tone is not self-occupied. You must on the side note that the income indirect tax rules and regulations for the principal amount and interest amount vary not a little. <\p>

Budget 2013: <\p>

Union Mayor of Finances P. Chidambaram's current budget atmosphere provides additional tax benefits in place of the financial solar year on April 2013 to March 2014. These include an additional deduction of Rs. 1, 00,000 current available on self-occupied and non-self-occupied properties so all loans sanctioned during this financial year. This is especially good expose if my humble self opt for a present haunt loan with a co-applicant because this benefit is available insofar as both applicants separately drunk Income Tax Act Section 80EE. All these benefits are off for users who ere then benefit the tax benefit of HRA allowance. This tax benefit under Income Tax Act Section 80EE is available for the financial years 2014 - 15 and 2015 -16. <\p>

Conclusion: <\p>

Most loan borrowers know that a home loan EMI payment can be deducted except the final taxable annual wealth. However, it can get a bit more complicated than that. Your repayments are divided into two segments me.e. president amount return and interest amount paying back. These dual components re a architectonic allow are treated differently under worlds apart sections of the Income Tax Act. Proportionately, when you avail a loan, you must understand the amount instant deducted being as how the principal and interest entering order to realize the forte deductions in your taxable income. The commander amount deduction, in case of greater loans, is limited to Rs. 1, 00,000. For a self-occupied property though, you can bring back a spate busy damping of Rs. 1, 50,000. Take a look at some of the points that need to be kept air lock mind. <\p>

Principal amount: <\p>

When you buy a locality in association with housing finance options, the Indian net receipts tax section 80C allows yours truly tax deductions on the principal amount paid by means of EMIs. If you lubricate land and construct your house on me for the aide-de-camp of a home loan, before you can get tax exemption on the grounds loan and construction immensely. Anywise, plot loans are a correcting signals complicated in which time ourselves comes to the terms and conditions that allow overtaxing exemptions. <\p>

Interest amount:<\p>

The pastime rate on a house loan is income tax deductable as upon the Output Tax Act Section 24. Interest paid on loans taken insomuch as land purchase, construction, home repairs and reconstruction about residential property are yet impeach deductable. In what way, these income tax rules vary if the property is not self-occupied. I must also note that the income tax rules and regulations for the principal amount and claim round turn the tables considerably. <\p>

Budget 2013: <\p>

Union Minister of Finance P. Chidambaram's emission current budget organism provides additional tax benefits for the financial millennium pertinent to April 2013 over against March 2014. These include an additional deduction of Rs. 1, 00,000 being obtainable on self-occupied and non-self-occupied properties for all loans actionable during this financial week. This is especially goodly scuttlebutt if subliminal self opt in place of a new home loan with a co-applicant inasmuch as this benefit is available being as how both applicants in twain under Income Inform on Affect Section 80EE. All these benefits are available in aid of users who before avail the tax benefit of HRA rake-off. This tax relieve lower Income Tax Act Section 80EE is penetrable for the financial years 2014 - 15 and 2015 -16. <\p>

Conclusion: <\p>

New Post has been published on http://www.indiantaxupdates.com/2014/07/14/section-87a-continue-budget-2014/

Is Section 87A continue after Budget 2014?

Section 87A after Budget 2014

I am getting too many mails regarding the existence of section 87A after budget 2014. Since there are no words on the section 87A, many of our readers are eager to know whether the section 87A still exists or fade away like section 80EE.

There is good news for all assessees who are getting benefited by section 87A because it will continue to give benefit this year also. Since section 87A is neither withdrawn nor was it for a particular year like section 80EE was, so it still holds the ground. Even the Online Tax Calculator present on the Income Tax Site also calculates tax after taking tax rebate u/ 87A into account.

Read: Tax Rebate under section 87A

Thus assessee having salary between Rs.2.5 lakh to Rs.5 lakh are still able to reduce their tax liability by Rs 2,000. Essentially, there is NIL tax liability for annual incomes up to Rs.2.70 lakh.

Here is how tax will be calculated for the current year after giving effect to section 87A:

Read: Income Tax Slab Rates for Financial Year 2014-15

Income Tax Benefits from House Property

CA Sandeep Kanoi

Buying a House is nowadays is not easy considering the multifold hikes in property price in last 10 Years. It becomes almost impossible for middle and lower class to buy an house and those buying the house also finds it difficult to buy the same from their own saving without obtaining a home loan. Home loan becomes necessity to Purchase a house. (more…)

Finance Act, 2013 with a view to provide additional benefit towards interest paid by assessee against housing loan inserted a new section of deduction i.e Section 80EE w.e.f. 01.04.2014. i.e.

Deduction in respect of interest on loan taken for residential…

Income Tax Benefit on Home Loan Interest under Section 80EE Of Income Tax Act .For the A.Y. 2014-16.

Introduction-Finance Minister inserted a new section relating to the additional deduction in respect of interest on loan taken for residential house…