Budget 2017-18 & the Finance Bill 2017 have been tabled in Parliament. The income tax rate for those earning between Rs 2.5 lakh and Rs 5 lakh has been halved to 5%. Except this change, all other Income Tax Slab rates have been kept unchanged by the Finance Minister for the Financial Year 2017-18 (Assessment Year 2018-2019).
Tax planning is an important part of a financial plan. Whether you are a salaried individual, a professional or a businessman, you can save taxes to certain extent through proper tax planning.
The Indian Income Tax act allows for certain Tax Deductions / Tax Exemptions which can be claimed to save tax. You can subtract tax deductions from your Gross Income and your taxable income gets reduced to that extent.
Let us understand all the important sections and new proposals with respect to Income Tax Exemptions FY 2017-18. I hope you find this list useful and helps in planning your taxes well in advance.
List of Income Tax Exemptions FY 2017-18 / AY 2018-19 (Chapter VI-A deductions list)
The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only. The various investment avenues or expenses that can be claimed as tax deductions under section 80c are as below;
- PPF (Public Provident Fund)
- EPF (Employees’ Provident Fund)
- Five year Bank or Post office Tax saving Deposits
- NSC (National Savings Certificates)
- ELSS Mutual Funds (Equity Linked Saving Schemes)
- Kid’s Tuition Fees
- SCSS (Post office Senior Citizen Savings Scheme)
- Principal repayment of Home Loan
- NPS (National Pension System)
- Life Insurance Premium (Read : ‘Best Term insurance plans‘)
- Sukanya Samriddhi Account Deposit Scheme
(Read : ‘Tax Saving Investment Options u/s 80c | In whose name can they be Invested?’)
Contribution to annuity plan of LIC (Life Insurance Corporation of India) or any other Life Insurance Company for receiving pension from the fund is considered for tax benefit. The maximum allowable Tax deduction under this section is Rs 1.5 Lakh.
Employee can contribute to Government notified Pension Schemes (like National Pension Scheme – NPS). The contributions can be upto 10% of the salary (salaried individuals) and Rs 50,000 additional tax benefit u/s 80CCD (1b) was proposed in Budget 2015.
As per Budget 2017-18, the self-employed (individual other than the salaried class) can now contribute up to 20% of their gross income and the same can be deducted from the taxable income under Section 80CCD (1) of the Income Tax Act, 1961, as against current 10%.
To claim this deduction, the employee has to contribute to Govt recognized Pension schemes like NPS. The 10% of salary limit is applicable for salaried individuals only and Gross income is applicable for non-salaried. The definition of Salary is only ‘Dearness Allowance.’ If your employer also contributes to Pension Scheme, the whole contribution amount (10% of salary) can be claimed as tax deduction under Section 80CCD (2).
Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2016-17. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.
(Read : ‘NPS Scheme – Pros & Cons‘)
Contributions to ‘Atal Pension Yojana‘ are eligible for Tax Deduction under section 80CCD.
Deduction u/s 80D on health insurance premium is Rs 25,000. For Senior Citizens it is Rs 30,000. For very senior citizen above the age of 80 years who are not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure.
Preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family can be claimed as tax deductions. Remember, this is not over and above the individual limits as explained above. (Family includes: Self, spouse, dependent children and parents).
You can claim up to Rs 75,000 for spending on medical treatments of your dependents (spouse, parents, kids or siblings) who have 40% disability. The tax deduction limit of upto Rs 1.25 lakh in case of severe disability can be availed.
To claim this deduction, you have to submit Form no 10-IA.
An individual (less than 60 years of age) can claim upto Rs 40,000 for the treatment of specified critical ailments. This can also be claimed on behalf of the dependents. The tax deduction limit under this section for Senior Citizens is Rs 60,000 and for very Senior Citizens (above 80 years) the limit is Rs 80,000.
To claim Tax deductions under Section 80DDB, it is mandatory for an individual to obtain ‘Doctor Certificate’ or ‘Prescription’ from a specialist working in a Govt or Private hospital.
For the purposes of section 80DDB, the following shall be the eligible diseases or ailments:
- Neurological Diseases where the disability level has been certified to be of 40% and above;
(b) Dystonia Musculorum Deformans
(c) Motor Neuron Disease
(h) Parkinson’s Disease
- Malignant Cancers
- Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
- Chronic Renal failure
- Hematological disorders
Tax Benefits of Rajiv Gandhi Equity Savings Scheme (
Section 24 (B) (Loss under the head Income from House Property)
- Tax benefit on loan repayment of second house will be restricted to Rs 2 lakh per annum only (even if you have multiple house the limit is still going to be Rs 2 Lakh only and the ceiling limit is not per house property).
- The unclaimed loss if any will be carried forward to be set off against house property income of subsequent 8 years. In most of the cases, this can be treated as ‘dead loss‘.
- I believe that this is a major blow to the investors who have bought multiple houses on home loan(s) with an intention to save taxes alone.
- As of now (till FY 2016-17), interest paid on your housing loan is eligible for the following tax benefits ;
- Municipal taxes paid, 30% of the net annual income (standard deduction) and interest paid on the loan taken for that house are allowed as deductions.
- After these deductions, your rental income can be NIL or NEGATIVE and is called ‘loss from house property’ in the latter case.
- Such loss is currently allowed to be set off against other heads of income like Income from Salary or Business etc. which helps you to lower you tax liability substantially.
If you take any loan for higher studies (after completing Senior Secondary Exam), tax deduction can be claimed under Section 80E for interest that you pay towards your Education Loan. This loan should have been taken for higher education for you, your spouse or your children or for a student for whom you are a legal guardian. Principal Repayment on educational loan cannot be claimed as tax deduction.
There is no limit on the amount of interest you can claim as deduction under section 80E. The deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.
This was a new proposal which had been made in Budget 2016-17. The same will be continued in FY 2017-18 / AY 2018-19 too. First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met for claiming tax deduction under section 80EE.
- The home loan should have been sanctioned during FY 2016-17.
- Loan amount should be less than Rs 35 Lakh.
- The value of the house should not be more than Rs 50 Lakh &
- The home buyer should not have any other existing residential house in his name.
- Such eligible home buyers can claim exemption of Rs. 50,000/- for interest on home loan under section 80EE from assessment year beginning from 1 st April 2017 and subsequent years.
Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. This deduction can only be claimed when the contribution has been made via cheque or draft or in cash. In-kind contributions such as food material, clothes, medicines etc do not qualify for deduction under section 80G.
The donations made to any Political party can be claimed under section 80GGC.
W.e.f FY 2017-18, the limit of deduction under section 80G / 80GGC for donations made in cash is reduced from current Rs 10,000 to Rs 2,000 only.
The Tax Deduction amount under 80GG is Rs 60,000 per annum. Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).
The extent of tax deduction will be limited to the least amount of the following;
- Rent paid minus 10 percent the adjusted total income.
- Rs 5,000 per month.
- 25 % of the total income.
(If you are claiming HRA (House Rent Allowance) of more than Rs 50,000 per month (or) paying rent which is more than Rs 50,000 then the tenant has to deduct TDS @ 5%. It has been proposed that the tax could be deducted at the time of credit of rent for the last month of the tax year or last month of tenancy, as applicable.)
Rebate under Section 87A
Tax rebate of Rs 2,500 for individuals with income of up to Rs 3.5 Lakh has been proposed in Budget 2017-18.
- Only Individual Assesses earning net income up to Rs 3.5 lakhs are eligible to enjoy tax rebate u/s 87A.
- For Example : Suppose your yearly pay comes to Rs 4,50,000 and you claim Rs 1,50,000 u/s 80C. The total net income in your case comes to Rs 3,00,000 which makes you eligible to claim tax rebate of Rs 2,500.
- The amount of tax rebate u/s 87A is restricted to maximum of Rs 2,500. In case the computed tax payable is less than Rs 2,500, say Rs 2,000 the tax rebate shall be limited to that lower amount i.e. Rs 2,000 only.
- The Tax Assesse is first required to add all incomes i.e. salary, house income, capital gains, business or profession income and income from other sources and then deduct the eligible tax deduction amounts u/s 80C to 80U and under section 24(b) (Home Loan Interest) to come up with the net taxable income.
- If the above net taxable income happens to be less than Rs 3.5 lakhs then the tax rebate of Rs 2,500 comes in to the picture and should be deducted from the calculated total income tax payable.
Section 80 TTA
Deduction from gross total income of an individual or HUF, up to a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account with a bank, co-operative society or post office can be claimed under this section. Section 80TTA deduction is not available on interest income from fixed deposits.
This is similar to Section 80DD. Tax deduction is allowed for the tax assessee who is physically and mentally challenged.
It is prudent to avoid last minute tax planning. Do not invest in low-yielding life insurance polices or in any other financial products just to save taxes. It is better you plan your taxes based on your financial goals at the beginning of the Financial Year itself. Plan your taxes from April 2017 itself, instead of waiting until late December 2017 (or) January 2018.
(Read : ‘Best ELSS Tax Saving (Sec 80c) Mutual Fund Schemes for FY 2017-18‘)
It is OK to pay some taxes when you can not save or cannot invest in right financial products. But, do not invest just to save TAXES. The cost of buying wrong financial products may outweigh the cost of taxes. Tax Planning is not a goal but a tool. Remember “Tax Planning alone is not Financial Planning.”
Also, kindly understand the tax treatment of the selected investment products across the different investment stages (i.e., investment, accrual & withdrawal) and then invest. (Read : ‘Tax treatment of various Financial Investments‘)
I believe that the above list is useful for your Tax Planning purposes. The above Income Tax Exemptions FY 2017-18 are applicable for financial year 2017-2018 (Assessment Year 2018-2019).
(Image courtesy of Stuart Miles at FreeDigitalPhotos.net) (Post first published on : 27-March-2017)
Thanks for sharing lot of knowledge
medical reimbursement for the month of february 2018,but payment recive in april 2018,please tell me tax paid by me or not tax paid in year 2018-19 return
If the money received through a claim under a medical policy from insurance company, it is only a reimbursement of expenditure already incurred by the policyholder. As this does not amount to profit or income for the insured person, this money is not taxable.
Interest on House loan paid is Rs 2 Lac for a jointly owned and co-borrowed loan.
Can both husband and wife claim Rs 2 Lac each to this Rs 2 Lac interest meaning they paid 2 lacs total but exemption they will claim Rs 2 Lacs each total 4 lacs – it is correct .. ?
Dear Mr BORA,
If the total interest paid in a FY is Rs 2 lakh.
Individually, both of them can claim Rs 1 lakh each (assuming the ownership ratio as 50:50).
deduction under 80EE of rs 50000/- can be availed or not if possesion of house is not received.
Dear Mr Vatnani,
Yes, sec 80EE tax benefit is available even on under-construction properties..
Sir senior citizen below 80 year how can I get tax exemption on intrest earned from bank fd for one year
Dear AMREESH ji,
I am assuming that you would like to know about new Section 80TTB.
Suggest you to kindly go through this article : FY 2018-19 Section 80TTB | Tax Exemption of Rs 50,000 on Interest Income to Senior Citizens
Dear Mr,.Reddy I am a senior citizen the total expenditure on my medical treatment including doctor’s consultations during FY 2017-18 is around Rs.20,000/- how much rebate & under which section of IT Act I can avail.
Dear Mr GUPTA,
If you have a salary income with medical allowance, you can claim as reimbursement of medical bills (by submitting it to your employer) up to Rs 15k.
If you pay medical insurance premium then that can be claimed u/s 80D.
Preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family can be claimed as tax deductions u/s 80D.
Related article :
Health Insurance Tax Benefits (under Section 80D) for FY 2018-19 / AY 2019-20
Dear sir, I want to know whether 80gg concession is applicable for women in contractual job getting consolidated salary from education deptt. RMSA. How to calculate 10% of total income.
Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).
I have taken cc/over draft loan in a canara bank against collateral security for the business purpose. and I took MOD(MEMORANDUM OF DEPOSIT OF TITLE DEEDS) for the bank for the loan purpose.that mod charges was around 60000 Rs. is it possible for claiming any tax deduction ?
and my company material ( plastic hoses) was fired by some person.I have an fir copy . is it possible for claiming any tax deduction ?
and I have taken personal loan using my car in HDB finance for the business purpose. is it possible to take interest of personal loan for claiming any tax deduction ?
I believe that tax benefit is not available for the above three scenarios.
I own a house and claiming HBA interest under section 24(1). AsI am having only one house and purchased first time in the year 2011, Can I get exemption under section 80EE also.
Provided you meet below other criteria as well;
The home loan should have been sanctioned during / after FY 2016-17.
Loan amount should be less than Rs 35 Lakh.
The value of the house should not be more than Rs 50 Lakh &
The home buyer should not have any other existing residential house in his name.
What is the maximum exemption on dividends on AY 2018.19?
What is the meaning of Dividends, Gross on ITR2 for AY 2018.19?
Up to Rs 10 lakh of dividends (on stocks) received is not subject to taxes.
Under what clause of the IT act the exemption of Rs 10 lakhs of dividend is allowed? Pl reply
Dividend received (up to rs 10 lakh) from an Indian company which has suffered dividend distribution tax is exempt from tax under section 10(34).
Is Gratuity exemption upto Rs 20 lakhs available for A.Y. 2018-19?
Dear Chandrasekhar ..I believe it is applicable for AY 2018-19. You may kindly re-check this with a CA too..
Hi Sreekanth Sir
I'm a defence personal, am I eligible for transport allowance tax exemption bcoz I'm receiving monthly 1893 Rs.
Please tell me how much and under which section.
Can I fill medical exemptions for small treatments like fever, eye, dental treatment, or small blood tests etc.
Bcoz my family is paying more than 20k per year.
And please provide a detailed list of exemptions for defence personal.
Dear Mohit ji,
You can claim Transport or conveyance allowance of up to Rs 1,600 pm in FY 2017-18 / AY 2018-19 under section 10(14)(ii) of Income Tax Act.
You may go through THIS LINK for list of allowances and benefits available for the salaried.
I AM AN RETIRED BANK OFFICER
PENSION DRAWN FOR APRIL 2018- 33600/-
TOTAL PENSION FOR THE FY 2018-19 — 4,03,200
EXEMPTIONS — STD DEDUCTION — 40000/-
HEALTH INSURANCE PREMIUM – 12000/-
ANNUAL MEDICAL CHECK-UP – 5000/-
( MAX ADMISSIBLE )
NET TAXABLE INCOME 3,46,200
TAX @ 5 % ABOVE Rs.3.00 lakhs 2,310
tax rebate U/S 87A 2,500/-
TAX LIABILITY NIL
PLZ CLARIFY WHETHER I AM RIGHT IN CALCULATION
AGE 64 YEARS
Standard deduction of Rs 40,000 is available from FY 2018-19 / AY 2019-20 only.
Kindly read : Rs 40,000 Standard Deduction from FY 2018-19 | Does it really benefit the Salaried?
You may kindly refer to this income tax calculator AY 2018-19..
I am referring my estimated income from pension during FY 2018-19 only. Please guide me on the query raised.
Yes, your calculation is correct.
I have taken home loan from a bank for a flat which is now on rent. Can I take a loan from family members or relative on the same rate of interest as that of bank and prepay part of bank loan. In that case can I claim rebate under section 24 for interest part of both the loans. If yes What paper formality will be reqd.
Yes, you can.
If you take a loan from a recognised lender, you will be able to avail of the tax benefits under Section 80C and Section 24.
If you do not take the loan from a recognised lender but do so from a relative or friend, then you only get part of the tax benefit.
The interest you pay is eligible for deduction under Section 24.
However, you will not get the benefit of principal repayment under Section 80C..
To be eligible for the deduction of principal payment, the loan has to be from a list of recognised lenders such as banks, financial institutions or your employer company.
Ensure that you take the loan by cheque. When you repay, make sure you do it by cheque only.
Get a statement from the lender (Friend/relative) stating the amount paid by you every year.
When you take a loan, document it legally. Make sure that it has the lender’s name and your name, the loan amount, the repayment tenure and the rate of interest.
I am a sr. citizen 75Y e-filing IT online.
There was a deduction u/s 47A an amount of Rs.5000.00 rebate from the tax payable for those whose gross income is less than Rs.5,00,000.00 for Sr. citizens.
Was the above removed for the FY 2017-18 ?
Will you please let me through e mail.
Sec 47A is related to ‘Deemed Capital Gain’.
I do not have much info on this. Suggest you to kindly consult a CA.
The section you have referred to is 87A – The rebate is still available @ Rs.2500
Plz Performa of Late Return Filling FY (2010-2011) & Submit in AY (2019-2020) & PPF Exemption Performa Given on my E Mail ID Given Below
who is eligible additional standerd deduction Rs.40,000/- for the F.Y. 2018-19 please clarify
Suggest you to kindly go through this article @ Rs 40,000 Standard Deduction from FY 2018-19 | Does it really benefit the Salaried?
I am student pursuing the course of Company Secretary.. I have my exam in June, 2018. As questions will pertain to AY 2018-19, will the list of deductions given here do for the purpose of the exam?
Dear Arbita .. This article gives us a basic idea about the income tax deductions. Suggest you to go through a guide or text book(s) that are generally referred to for your exam. All the very best!
My father died in Dec 2016. In Apr 2016 he had made a 5-year Tax Saving FD (under Sec 80C) in Axis Bank, the linked Savings Bank a/c was jointly in our names (I am the second holder). After his death, his name has been deleted from the Savings Bank account, but the FD still remains linked to the account. I prematurely closed all FDs in this account online, however, the Tax Saving FD cannot be closed on line. I checked with the Bank who said that I have to wait for 5 years for the FD to mature. Is there a way this FD can be prematurely closed and proceeds given to nominee?
Tax saving FDs have a lock-in period of 5 years. However, in case of death of the depositor before the maturity of term deposit, levy of penalty would be exempted and nominee/legal heir will be allowed premature payment even before the lock-in-period.
Kindly read :
Is Lock-in period for Investments applicable on unfortunate demise of the Investor?
Nominee Vs Legal Heir : Who will inherit (or) own your Assets? | Importance of WILL
My Bank says that I have to wait for the maturity date (5 years from opening the FD). Can you please give any reference/link of RBI regarding this rule, so that I can quote it to my Bank. Thanks.
You may kindly refer to point no. 20.3 of this RBI notification..
Thank you so much Sreekanth. You are indeed extremely helpful.
You are welcome. Keep visiting ReLakhs.com!
I WANT TO KNOW THAT FOR THE FYR.2018-19 ELSS MUTUAL FUND IS LIABLE TO LTCG OR STCG?
Yes, from FY 2018-19, Capital Gains (LTCG/STCG) equity mutual funds are subject to taxes.
Kindly read :
Mutual Funds Capital Gains Taxation Rules FY 2018-19 (AY 2019-20) | Capital Gains Tax Rates Chart
10% LTCG Tax on sale of Stocks/Equity Mutual Funds | Budget 2018-19 Proposal
Budget 2018 LTCG Tax on Equity Mutual Funds & Important Implications
Mutual Funds Vs ULIPs – Which is better? | Post Budget (2018) LTCG Tax proposal on Equity Mutual Funds & Shares
agricultural land located in municipality area bought 45 years back , sold in 2017-18, how to arrive the indexed cost of acquisition pls suggest how to calculate the CG.
You may kindly go through below articles to get idea about the calculation of CG and how to get LTCG exemption…
How to calculate Capital Gains taxes?
Agricultural Income & Sale of Agricultural land : Tax Treatment, Computation & Implications
Dear mr Sreekanth,
I need help. Please help me. My. Monthlysalary has the following components basic salary 24930, hra 15584, conv 9350 and other 12467 and pf 1800. I pay tution fee and have a home loan which along with pf comes to 150000. I am a single parent. Want to save tax.. Please let me know what is the exempt amount int in conveyance.. Whats the max tax i can save? Pl help
Transport Allowance granted to an employee to meet expenditure on commuting between place of residence and place of duty is up to Rs. 1600 per month (Rs. 3,200 per month for blind and handicapped employees).
Hi, i need to know urgently.. What is the max Conveyance allowance one can claim in 2017-18? My salary has a component of conveyance allowance… Please help..
80DD can be claimed both the parent of Rs.75000 each
Dear Gopi ..The maximum amount one can claim is Rs 75,000 u/s 80DD (for both dependents put together).
mai paramilitary force person hu. kya humko milne wala special duty allowance or ration money mai tax dena padega…. pls rply
Dear Harish ji,
I am not sure on this.
But, here is the link which has a list of all possible allowances..
I am a salaried employee getting HRA. I have a Housing loan and house is in my name and i have the possession of the house but i don’t stay there because of renovation work and i stay in a rented flat. Everything is in same city.
Need to know if i can claim HRA+Repayment of Housing Loan+Repayment of Interest of Housing Loan.
You can claim HRA & tax benefits as well.
Kindly keep your rent receipts safely, for your future reference..
For enabling us to claim the interest on housing loan, do we need to show the notional rent received on this?
Could you please clarify?
Dear Sajeevan ..May I know the type of property held by you and its occupation status?
1. Recurring deposits (RD) with Bank / Post office with self name and dependents name are eligible for deduction from Salary Income.?
2.Insurance Premium paid for Parents eligible for deduction from salary income ?
3.Mutual Funs Investment with Dependants Name Eligible for Deduction from Salary Income ?
1 – No.
2 – If you pay life insurance premium on policies which are in name of parents, brothers, sisters or In-laws then such amounts are not eligible to claim u/s 80C.
Kindly read : Tax Saving investment options u/s 80c : In whose name can they be invested?
3 – Investments in ELSS funds which are in your name alone can be claimed as tax deduction. ELSS funds can be held in joint-names, but only first-applicant (primary holder) who is a tax-assessee can claim the tax deduction.
Thank you So much Sir..
Please tell me what is the housing loan and interest for financial year 2017-2018 whether principal and interest how much limit please tell me what is the exempt principal and Interest amount how much we have to show, please give me reply ASAP.
Principal repayment : Up to Rs 1.5 Lakh can be claimed u/s 80 c
Up to Rs 2 Lakh can be claimed as tax deduction as loss under the head ‘income from house property’.
My CTC is 100000.
Home loan – 125000/Year
Tuition fee – 400000/Year
Rent – 8000/Month.
Please suggest me, where do I invest so that my TAX deduction is little less – Not 80000
Home loan interest can be claimed u/s 24b.
Tuition fee up to Rs 1.5 lakh can be claimed u/s 80c.
If you have health insurance then premium paid (the max limits as explained in the above article) u/s 80D.
Other possible options, I have given in the above article.
If I habe invested 1.50 lacs in ppf under 80c and 50000 under 80ccd(1b). And my employer’s contribution in 59000 in nps then under 80ccd(2) do i get exemption of 59000 .? Which means total exemption would be 2,59,000 ?
You will get deductions as under
80c : 1,50,000
80ccd(1b) : 50,000
80ccd(2) : 59,000 (sub to maximum of 10% of your salary after including this 59000 to your salary)
so,you will get total 2,59,000 as deduction
I have a doubt in HRA…
I am paying the rent of 8300 per month, but I don’t have rental agreement or PAN details of the owner and I have only rental receipt. Can I show this 8300 in HRA without rental agreement and PAN and avail the tax benefit for 2017/18?
Ideally, you should get the rental agreement done.
If the rent paid is more than 1 lakh per annum, it is mandatory for the employee to report PAN of the landlord to the employer.
In your case it is less than Rs 1 lakh pa, so you may just submit the receipts and claim HRA. Kindly make the rent payments through non-cash mode.
But suggest you to kindly get the agreement done and request for PAN card details from your landlord.
I am married but no child. I am paying tuition fee of a child leaving under the same roof can I get the benefit of the tuition fee in Income tax? Thanks
Is 80 CCD2 included in 80C or can I get additional tax benefit ?
Where to claim stamp duty and registration charges for new purchase of house?
Are you referring to Rs 50k for NPS investment?
If you have made investment in NPS then can claim up to Rs 50,000 u/s 80CCD(1B), this is over and above Rs 1.5 Limit u/s 80c.
If your employer also contributes to Pension Scheme, the whole contribution amount (10% of salary) can be claimed as tax deduction under Section 80CCD (2).
Stamp duty and registration fee can be claimed u/s 80c.
i am mutual fund distributor
Having 4 employees total salary paid to this 40000 per month
My gross income is 16 lakh
My housing loan is continuing 14000 per month
Pls suggested how much tax i want to pay as a professional
Kindly consult a CA .
May I help you in this regard
CA Anoop Tiwari
Dear Srikanth sir
I’m a government employee from Karnataka my net salary about 8.5L…. My savings u/s 80c is more than 1.5L except NPS (80CCD1) can I add this amount to u/s 80CCD1(B)?????
Also can I show Employer contribution u/s 80CCD2 Without adding this amount to Salary income?????
Please reply me… I’m waiting…
If you have made investment in NPS then can claim up to Rs 50,000 u/s 80CCD(1B), this is over and above Rs 1.5 Limit u/s 80c.
Can you please explain about NPS? Is this exempted upto Rs. 50,000/- over and above Rs. 1,50,000/- U/s. 80 C?
Dear Sarada..Yes, it is over and above Rs 1.5 Lakh. This additional Rs 50k can be claimed u/s 80CCD (1b).
Related article: National Pension Scheme (NPS) – Why it is not a good Investment Option?
Is bye pass surgery come under the 80ddb or not, Sir
I am not very sure on this.
Kindly check with a CA.
dear Mr. Srikanth,
I have a taken home loan at my native place near Tirupati. my parent residing there. now iam residing at Hyderabad in rental house for job purpose . can I claim both the Home loan benefits and HRA benefits.
for exiting home loan I taken top-up loan for house repair purpose, these amount interest and principle also can club and show in the home loan tx benefits.
Yes, you can claim HRA and also the tax rebate on Home loan.
You can declare the own property as a Self-occupied one.
Top up home loan : You can get tax deduction benefit on the top-up loan if you have receipts/documents to prove that the loan taken has been used for acquisition/construction/repair/renovation of a residential property. The tax benefit is available only on the interest portion of the loan under section 24.
Kindly read :
Self Occupied Property (SOP) & Tax implications
I am a sallaried employee. In my village I had purchased an agricultural land of 6 lakh in 2013 in a distant location.Now I sold that at 10 lakh and purchased another agricultural land of 10 lakh.Will capital gain be applicable in I.Tax calculation ?Please suggest.
If your agricultural land is in rural area, such land is not treated as Capital asset and hence no capital gain taxes are levied. Agricultural land in Rural Area India is not considered a capital asset. Therefore any gains from its sale are not taxable under the head Capital Gains.
Kindly read : Agricultural land sale and tax implications!
I have reimbursed Rs. 17000/- as medical expenses by providing my employer the necessary bills.
kindly tell me that while filing Income Tax return for AY 2018-19, how much can I claim and under which section.
As per Section 17(2) of the Income-tax Act, 1961,medical reimbursements upto Rs 15000/- shall not be taxable.Any amount over and above the specified limit shall be added to the salary.
Thanks and Regards,
CA Ram Mohan D Reddy
I am a salaried person while my wife is a housewife. We have a Joint Saving Account in a bank. Please tell me whether I should add the interest income from this Joint Saving A/c in my income for tax purposes. If yes, how much?
Dear Mr Garg,
If the deposits in joint ac is contributed by only you then you have to add the interest income in your ITR. You may request your banker to issue TDS certificates (if any) in your name .
Sir, For claiming relief under Section 89(1), is it necessary to file Income tax returns in the preceding years to which the income pertains ? For eg., I am getting Arrears for the period from 2010 to 2017. Is it necessary that to claim relief under 89(1), I should have filed I.T returns from 2010 to 2017 ?
I dont think it is mandatory to file ITRs of previous years.
Do remember to file Form 10E if you want to claim relief under section 89(1) in your income tax return for this FY.
Suggest you to consult a CA.
Sir, Basic Pay in level 4th is 30500/- . Before July Travelling Allowance was 800/- And after July 2017 is 1800/- How many Exemption will be in income tax during 2017-18?
Exempt to the extent of expenditure incurred for official purposes.
You may visit this link for more details..
Ex : If the Travelling allowance received is say Rs 1000 pm and the actual amount spent by the employee is Rs 800, then only Rs 800 would be exempted as TA.
If RA received is say Rs 1000 pm and the actual amount spent is Rs 120 0pm then Rs 1000 would be exempted.
Please tell me/clarify my doubt.
80 G under Income tax Act how much maximum deduction under this deduction for Individual Person?
Please reply my Email.
You may kindly go through this article..
I m a senior citizen, currently again working in the same company after retirement. I Hv income from FD & also from salary. To claim rebate from ITax, I wish to do it under 80c,uoto 150000. Now as I Hv invested this in some ICICI prudential scheme, the next premium date falls only on 4march 2018,& I Hv to submit the tax rebate details by next month itself to my company for form 16 submission. Can this be deferred & submit the same while filing return
Dear Madhu ji,
Yes, you can pay the premium in Mar’18 and can claim tax deduction u/s 80c in your ITR while filing your Tax return.
Related articles :
Think beyond TAXES when investing!
My Annual package is 6.2Lpa.
I have education loan and I pay interest of 20000 (covered under 80E).
I took up a new policy recently of 22000 per year (80C).
My father is 100percent blind and we dont do any medical treatment or any insurance still can I get the benefit under 80DD.
Please suggest me.
May I know your Insurance policy details (Name of the plan)??
As per the IT act – ‘The taxpayer has incurred expenses for medical treatment (including nursing), training & rehabilitation of the differently abled dependent or the tax payer may have deposited in a scheme of LIC or another insurer for maintenance of the dependent’, can claim tax deduction.
I have opted for jeevan Anand on my name with sum insured of 3Lakh and my mother is nominee.
I need info on 80DD my father is 100%blind.
Is medical bills or any insurance mandatory to get benefit under 80DD
I believe that legally one should have incurred the expenses for medical treatment to claim tax exemption under 80DD. You may check with any CA as well.
There is no need to incurr any expenditure on this count to obtain rebate under section 80DD.
WAT ALL U HAV TO DO IS OBTAIN MEDICAL CERTIFICATE from copetent athority prescribed in dat section
My Mother in law is purchasing a home, as she is not earning any, my wife and her sister are working and paying the home loan EMI for that home. There by my wife and her sister will be present in sale deed. I want to show that amount as rent paid to my mother in law. Is that legal or not, please advise.
If I understand your query correctly – The property will be co-owned by your Mother-in-law, your spouse and sister-in-law??
And you would like to take that house for rent and pay rentals to your mother-in-law??
one of my home loan is a joint loan.(myself+wife).
We both are working & both want to claim the tax exemption.
what is the %(60-40, 70-30,etc) we can share both.,or is there any rule stating we both have to claim 50-50 % only.
If the ratio of ownership share has not been declared in the Sale deed, then the it can be considered as 50:50 by default.
Kindly read : Joint home loan and tax implications!
I have two home loan..one is self occupied(myself).another home is at native.(occupied by parents).
can I claim interest paid for both home loan.
If yes what is the % of claim against home loan for native home which is occupied by parents.
both home loan are on my name.
If both are self-occupied, you need to declare either of them as a Let-out property.
The maximum loss that you can show under the head income from house property is Rs 2 Lakh in a FY (both home loans put together).
Kindly read : Income from House property & tax implications!
THanks for the quick response.
1) I’m declaring my native home loan as let out property.
if I declare monthly rent as 1000INR,& my paid interest against native home loan is 1Lakh INR,
then what is the interest amount eligible for tax exemption.
Dear Deepak.. Kindly go through the suggested article. It has details on calculation of ‘income from house property’.
Hello, My mother was diagnosed with cancer 4 years back and was treated for the same that time. Every year, she is required to undergo tests worth INR 25000 to ensure everything is normal. Can this be claimed for tax exemption under 80DDB or only 80D. At the time of operation, it was taken care by insurance so never claimed any tax deduction then. Thanks in advance!
An individual (less than 60 years of age) can claim upto Rs 40,000 for the treatment of specified critical ailments.
In this case, your mother has already been treated. So, I dont think tax deduction can be claimed u/s 80DDB.
80D can be considered for preventive health check-up. (Limit is Rs 5k only).
Dear Sreekanth ReddyGaru,
I & my wife are co-owners of a flat which is rented. Monthly Rent is being deposited by tenant 50:50 into our accounts separately after deducting 10%TDS.
We have taken home loan and co-borrowers. I am salaried and wife is housewife.
I am paying EMI from my salary and wife is repaying her share equally through rent received to her.
Total annual interest is Rs. 5, 70,000/- and principal is Rs.1, 90,000/- as per Provisional Certificate.
Requested your valuable advice on following:
1. How we should split interest, principal, 30%Standard deduction and property tax, etc to claim income tax benefits? Should it be in 50:50 %
2. Which rent should we consider as income i.e. before TDS deduction or after TDS deduction?
3. Can my wife fill IT return and claim return of deducted TDS as she is in lower income slab (rental income)?
4. Should we deduct monthly maintenance cost from income other than 30 % std deduction?
1 – Ideally if no ownership share ratio is mentioned in Sale deed, the tax benefits can be claimed in the ratio of 50:50.
Kindly read : Income from house property & tax implications..
2 – Before TDS deduction, you can declare the TDS details in ITR while filing your tax returns.
3 – Yes, she can.
4 – I believe it is inclusive in 30% std deduction.
Very informative. Thank you so much
I have take home loan in Jun 2013. I got home possession (key handover) in Jun 2017. Till FY 2016-2017 I was claiming only principal amount in section 80C. But this current year FY 2017-2018 I am claiming both principal amount in section 80C and Interest amount (Rs. 2,00,000.00) in section 24 c.
Question – Can I also claim Rs. 50,000.00 in 80EE (along with Interest amount (Rs. 2,00,000.00) in section 24 c) as this is my 1st House and 1st Home loan, Loan amount than 30 L and House value is 45 L?
If you meet the eligibility criteria for Sec 80EE, you can claim it.
I paid income tax of Rs 132074/- as TDS and Rs 5942/- as Self assessment tax during the assessment year 2016-17. The self assessment tax amount was less than 90% of my total tax and it was paid during July 2017. But I received intimation u/s 143(1) for demand of tax of Rs 1010/- (234B interest – 475/- and 234C interest 531/-). I replied for the same saying I am not agreeing. But now I received intimation u/s 154. Kindly advice whether I have to pay this tax or further how to reply.
Thanks in advance
Can be penalty for the delay in payment of entire tax/advance tax.
Interest under section 234 B and 234 C show up when –
* You have not paid any Advance Tax & your tax payable in a year is Rs 10,000 or more.
* You paid Advance Tax – but advance tax payments are less than 90% of (Final Tax calculated less TDS)
Suggest you to consult a CA on this matter. In case, you agree with the IT dept, suggest you to pay the dues and close this issue.
Hi, Thank you so much for the detailed explanation regarding IT. I am working in office who is looking after IT and i am new to this. I dont want to enter just amount under each section but want to know about the details of deduction under each section. Your blog was so informative and very very useful to me. Once again thanks and hats off to your work.
Your blog is quite interesting and educative.
I have a doubt reg. section 80 EE.
I took home loan of Rs.32 Lakh in 2016-17 for construction of house in own plot. Can I claim benefit under section 80EE for the additional interest of 50,000/-?
In short,Is the benefit applicable to purchase as well as construction or is only for purchase? I fulfil all other conditions under the section.
Dear Krishna.. I believe that you can claim tax deduction u/s 80EE.
Sir, Thank you very much for the clarification.
Shreekant, really worth reading. I have cleared all doubts regarding income tax.
I have subscribed and also informed my friends to subscribe.
Your blog is something I have been searching for a long time, replete with all minute details regarding the income tax exemptions. I had a lot of doubts about tax saving plans and now I made up my mind, I guess.. Thanks again for being open against opting for tax saving investment options if it is low yielding, i had the same the thoughts though and have reservations about investing in something like LIC. I am planning invest in ESSL. I have a home loan at present running (20 lakh) and I’m planning to take another home loan in the next financial year to save some additional taxes and make a good investment given the appreciative value a residential property may get you in the future. For the current home loan, I am claiming up to 1.8 lakhs tax exemption under home interest section. I hope I would get another 2-lakh tax exemption option if I take another HL I guess. Please advise! And I also I would like to contribute to your cause for giving the free advice if you are interested and having a chat with you about the same. Please let me know. Thanks!
It is not just LIC’s products, can be with any insurer, advisable to avoid investing in low-yielding traditional life insurance products (just for tax-saving).
Kindly do not make investment decisions just to save some taxes. Kindly read : Think beyond taxes when investing!
If are able to invest for your other high priority goals like retirement etc and if you are still be able to pay EMIs for new home loan comfortably then it should be fine. But do note that from FY 2017-18, one can claim maximum Rs 2 Lakh only as loss from house property, even if you hold multiple properties, as given in the above article.
Kindly read : Income from house property & tax implications!
In the tax decleration of my company, there is 2 section i need to declere-
1-LTA Reimbursement(Rs-21375) 2-Medical Reimbursement (Rs-1500)
For medical rembursement, I understood that, I need to submit the medicine bill.
But for LTA Reimbursement, what bill i need to submit?
Is it my monthly bus pass bill or monthly petrol expenses?
Thanks in advance for your suport.
Sorry to add one more question,
1-I am paying the rent of 8000 per month, but I don’t have the PAN details of my owner. Can I show this 8000 in HRA without PAN and avail the tax benefit for 2017/18?
2-If I will not declare any HRA, Is there any default amount for which I will get the tax benefit?
1 – LTA : To avail of the tax break, the employee has to furnish documentary evidence of the travel (on a vacation) to the employer.
You may go through below articles :
Article – 1
Article – 2
2 -If the annual rent paid by the employee exceeds Rs. 1 lakh per annum, it is mandatory for the employee to report PAN of the landlord to the employer. Some employers do insist for land lord PAN details even if the rent paid is less than Rs 1 lakh pa.
If you can not submit the rent paid details while declaring the Investments in your company, you can still claim your HRA when filing your income tax return, provided you have proofs like rental agreement, rental receipts etc., Also, it is advisable to ensure that the rent payments are made through banking channels as cash transactions may not be considered genuine..
For 80DDB, please advise if we need to produce medicine bills to claim tax free. what are the proofs required apart from Form10I?
Dear Uday..I believe that bills are not required..
Dear Sreekanth, If husband and wife are co applicants for home loan, to avail tax benefits, it seems joint ownership is a condition. If in case the ownership is with either of spouse, how to get ownership for the other? pl advise.
Kindly go through below articles, can be useful to you ;
How to add spouse’s name as co-owner of the property?
5 ways of transferring real estate property!
My mother treatment is going on for breast carcinoma in AIIMS.
May I take rebate in section 80DDB ?
And what documents are required for this?
I am not sure if this treatment falls under the specified list of treamtments under 80DDB. Is this related to cancer?
You need to obtain ‘Doctor Certificate’or ‘Prescription’ from a specialist working in a Govt or Private hospital (treating doctor).
Kindly go through below article, can be useful to you;
Article – 1
We pray for your mother’s speedy recovery and good health!
what is the transport allowance exemption limit for income tax calculation
Up to Rs. 1,600 per month (Rs. 3,200 per month for blind, deaf, dumb and handicapped employees) is exempt for FY 2017-18.
You may kindly go through this link
I have taken personal loan in a bank for doing renovation work for my home . is it possible to claim any tax deduction under head salary loss . Kindly advice
Dear sudharsan ..I dont think one can get tax benefits on personal loans…
I have taken homeloan for 32 lakh on 30 mar 2017. Started paying interest (19k around monthly) till october 2017, from nov 2017 I need to pay emi for 30k monthly. Home loan is joint with my wife. What are the benefits I can claim
You can claim principal payments in EMIs for FY 2017-18 of up to Rs 1.5 Lakh u/s 80c.
U.s 24, it is up to Rs 2 Lakh.
Kindly read :
Income from house property & tax implications
Joint home loan & Tax implications
Under-construction property & tax implications
Hi Reddy garu
I’m a retired PSB officer retired in July 2017. Got 1497000 under gratuity payment. Bank deducted TDs for Rs
497000. I understand that government has increased the gratuity exemption limit to 2000000 from this fy . Whether I can claim refund of this TDs while filing returns next year
Dear Mahendra Ji,
I believe that the Govt has not yet notified/amended the ACt (though it has confirmed the hike). So, we may have to wait for some more time to get a clarity on this.
Kindly read : Gratuity & Tax implications..
Excellent work by site member. I really appreciate it.
Thanks for all info you provide.
Only single query : is tax limit for all section remain same for 2017-18?
Hi Mr Reddy just a doubt for home loan interest deduction. From this year, if someone has 2 houses: one self occupied and one rented, what is total deduction I can claim? My understanding :
1) for self occupied 2 lakhs and
2)for rented out house another 2 lakhs (even if actual interest is more, say 3 lakhs)
OR, is it a combination of self and rented capped at 2 lakhs?
In first case I can claim 2+2 while in second I can claim only 2 lakhs in all. Please advice. My employer saying total of self and rented is 2 Lakhs.
No, the total cap is Rs 2 lakh (both houses put together).
Thanks Mr. Reddy! Appreciate the prompt response!
Under 80D, if self and spouse are both above 60 and parents not living, is the limit 25000 or 30000?
Dear Mr Rao..The limit is Rs 30,000. Kindly read : Section 80D rules..
The tax exemption u/s 10(14) on Transport Allowance (TA) in FY 2016-17 was Rs. 1,92,000 as the TA was Rs. 1600 per month (i.e. 12*1600=192000) but now that the TA has been raised to Rs. 3200 per month. what would be the exempted limit on TA for FY 2017-18?
TA exemption for FY 2017-18 / AY 2018-19 is up to Rs. 1,600 per month (Rs. 3,200 per month for blind, deaf, dumb and handicapped employees) is exempt.
Kindly visit this link…
I booked a under construction flat in 2012-13 with a loan. Now in 2017-18, possession has been offered however, registry is yet to be done. I am govt employee. Kindly let me know the following:
1. whether i will get benefit of exemption for interest part now on wards and how much?
2. Now i want to sell it for purchasing another flat in other city. i will clear my earlier loan and a new loan would be taken for purchase, can i get the benefit of exemption of interest that has already been paid against the previous flat’s loan as till date nothing has been claimed.
3. what will be the role of capital gain in this case? if i sell it after registry and purchase another flat.
1 – If you get possession in FY 2017-18 and also get it registered now, you can claim tax benefit of up to Rs 2 Lakh (regular emi + PPI).
Kindly read : Under construction property & tax implications.
2 – If you sell, you are not the owner of the property,hence can not claim tax benefits.
3 – Kindly read : How to save capital gains taxes on sale of property?
Thanks for your reply.
Kindly let me know then in the above case by how much time i have to keep for availing the benifit of interest excemption.
Secondly if i want ot purchase another by selling it can i add the interest paid part in the cost of flat while calculating the indexed cost.
Please let me know what should i do in case i have to purchase new one by selling existing flat.
What I mean is – If one is not a owner of the house, he/she can not claim tax benefits on that property.
Also, kindly keep the below points in mind ;
Your Home Loan EMI consists of Principal and Interest component. The principal component is allowed as deduction under Section 80C. However, if you sell your residential house within five years, you may have to forgo your tax benefits. The entire amount of deduction claimed under Section 80C in prior years on the amount of the principal repayment will be added to the taxable income in the year of sale of the property. Also, no income tax deductions shall be allowed in respect of repayments made during the year of sale of the property.
Kindly note that this rollback is applicable only to deduction(s) claimed under Section 80C. Deductions claimed under Section 24 (b) on interest payable on your home loan will not be withdrawn.
Yes, you can claim ‘interest on capital borrowed’ as part of cost of acquisition of property.
thanks again. Kindly clarify me that in your reply that “Yes, you can claim ‘interest on capital borrowed’ as part of cost of acquisition of property.” will be applicable in case of short term gain.
2. what is basis of before 5 year. i have not claimed exemption under 80 c.
3. if i hold this flat for 2 year after possession to qualify for LTCG, in that case should i go for replacing this flat with another one and what will be effect of already paid interest on previous flat.
4. whether i will get benefit of interest exemption in newer flat if new loan is taken and older one is cleared.
As mentioned in my previous comments – Kindly note that this rollback is applicable only to deduction(s) claimed under Section 80C. Deductions claimed under Section 24 (b) on interest payable on your home loan will not be withdrawn.
If you have not claimed tax benefits, nothing is rolled back.
3 – Kindly read this article.
4 – Yes, you can claim tax benefits on new home loan.
I understand that time limit for under-construction properties has been increased from 3 years to 5 years from FY 2017-18 for claiming 2 lacs interst deduction. Is it valid for houses booked from FY2017-18?? OR booked before that also??
E.g. If one booked a house in Apr-2011 then 5 years completion is on 31st Mar 2017. If constructions is completed before 31-Mar-2017, then can 2 L deduction be claimed in FY2017-18 OR will the benefit reduce to 30000?
It is applicable for the houses bought before FY 2016-17 itself.
So, cut off date in the above case would be 31-03-17.
Thanks for your reply.
The period of 5 years is from date of booking the house OR from the date of sanction of loan?
In view of the fact that housing projects often take longer time for completion, it is proposed that clause (b) of section 24 be amended to provide that the Deduction under the said provision on account of Interest paid on Home Loan for acquisition or construction of a self-occupied house property shall be available if the acquisition or construction is completed within FIVE years from the end of the financial year in which capital was borrowed.
This amendment will take effect from 1st day of April, 2017 and will, accordingly apply in relation to assessment year 2017-2018 and subsequent years.
5 years is counted from the end of the relevant financial year (capital borrowed / date of loan acquisition).
I am a salaried individual, have an NPS account, and have invested Rs. 1.5 Lakhs under Section 80C in LIC , Also i have invested Rs. 50000 in NPS , Am I eligible for additional deduction under 80CCD 1 for nPS amount
I am an individual business owner, Gross Income 11 Lakhs and have invested Rs. 1.5 L under Section 80CC in Max Life Insurance and I have invested Rs. 1 lakh in NPS for the year 2016-17
Do i become eligible for 1.5L +0.50 =2.0 for total deductions or only 1.5 L or 1.5L + 1.0 L entirely due to self owner
What will be the case for deductions in current year 2017-18 also?
Thank you in advance
1 – Yes
2 – Rs 2 Lakh. Additional Rs 50k can be claimed.
Hi Sir ,
Day before yesterday I got Life insurance policy amount into my salary account . However, I don’t know if they have deducted any tds on the same or not .
Credit happened approx. 2lacks. My question is while filing the return for this F.y will I have to pay any tax on the same or not .
Or how could I know whether they have deducted any tds on the same .
If its maturity proceeds then can be a tax-free amount. Kindly go through this article..
You may kindly check your Form 26AS to know if any TDS has been deducted by your insurer..
I have one flat which I currently stay in and for which I have already cleared my loans. I am planning to buy another Flat and plan to move to that house by next June (Jun’18). After that I will rent out my existing flat. I have following questions:
– Will the new flat I buy considered as Self – Occupied?
– Can I claim tax benefit of Rs 2Lakhs on this?
– If I do not let out my first flat should I still pay income tax on the notional income
Thank you for help
1 – Yes, you can consider the new Flat as Self occupied property after taking the possession (june’18).
2 – Yes, but the maximum limit is Rs 2 Lakh (all houses put together).
3 – Yes, you need to calculate ‘income from house properties’ and still disclose the details in your ITR. (You may consider it as ‘let out property kept vacant’.)
Kindly read :
Income from house property & Tax implications
Self occupied property & tax implications
Under-construction property & tax implications
Thank you Sreekanth for the quick response. Few more questions
– How do we calculate the notional income without actually letting out the property. Is there a guidance somewhere. Is it based on cost of property?
– Just reconfirmation that – if I do not actually rent the first property then I have to pay Wealth tax on it (although I show the notional rent as income)
If you keep it vacant for the whole year then the rental income can be shown as NIL.
Kindly note that wealth tax has been abolished in India.
Hi Sreekanth, I am a parent of a special kid with 90% permanent disability (severe mental retardation). Certeficate from District Civil Sergeon which mentions the said disability is available with us. Can I submit the copy of the same for claiming the deduction under 80DD? Is it necessary to give the declaration in new Form no. 10-IA every year?
I think you need to submit the form 10 IA every year along with the ITR.
But for section DDB, I have read somewhere on the web that Form 10I is not mandatory.
Thanks for your valuable information.
My query is regarding HRA and home loan.
I have a house in Chennai wherein my parents staying, paying 15k EMI as home loan.
Purchased another apartment in Bangalore, same has been rented out for 10K/month and paying 30kEMI as home loan.
I stay in rented house in Bangalore which is 3 KM away from the newly purchased one and paying 22K/month as a rent.
How to claim both HRA and house loan 80C and 24B(complete 2lakhs) amount?
Should i show both the properties as rented one, so that , we need to show the rented income?
Thanks in advance.
Yes, you can claim HRA and also show both the owned properties as Let-out ones, provided you have rental agreement done even with parents and issue rent receipts to them, and get the rent amount in your account.
If housing loan has been taken during f. Y. 2017-19, exemption u/s 80ee can be taken or not.. Pls clarify
It is f.y. 2017-18
Dear Hemant ..Yes, tax deduction u/s 80EE can be availed..
Pls let me know , GST is applicable on CAR LEASE or not ,
Although car lease amount , driver reimbursement and patrol reimbursement is part Employee CTC (Salary)
i am little bit confuse about that so pls help me.
It is applicable..but looks like some confusion on this topic exists..
Kindly go through this forum thread..
I am a govt employee and received HRA on basic salary as 10% but my graoss salary is basic+DA 146 % of basic + 10% of HRA
Kya mai tax duduction ke tahat house rent alowanace ka exe[tion le sakta hu if I paid for rent as 2500 per month for whole 12 month
Kindly go through this HRA calculator..
Please tell me whether rebate of Rs. 5000/- below income of five lacs still exists for the current financial year or not
Dear Sanjay..It is up to Rs 2500 for FY 2017-18. Kindly go through the points given under ‘Rebate under Section 87A’..
Thanks for your guidance please
Yes 2500/- you can avail till 5lac
I AM GOVT EMPLOYEE AND BLESS WITH 02 CHILD.
CAN I EXEMPTED UNDER SALARY EMPLOYEE —?
HOW MUCH —?
WHICH UNDER SECTION—?
Dear KUSHAL ..Unable to understand your query..kindly rephrase it..
hi..thanks for the information..my query is regarding exemption of home loan interest under section 80EE..can it be claimed if the property is under construction and all other conditions are being met? plz let me know..thanks in advance..
Dear Smita .. Yes, can be claimed on an Under-construction property too!
Hi Sreekanth ,
I took home loan for under construction property in Navi Mumbai which completion certificate can be avail after December 2019 or later. And currently I am residing in Dombivli on rent. Both location has different municipal corporation jurisdiction.
My EMI has started and banker said they can provide me provisional certificate of home for tax declaration. Hence just want to know how.
1. I can declare tax rebate on EMI paid as this is under construction property. My company finance dept said that they may declare with banker provisional certificate. But IT team may or may not accept it and it lead to scrutinize.
2. Can I declare HRA same time along with home loan EMI?
1 – Kindly read : Under-Construction property & tax implications..
2 – Till you get the possession of your property, you can not claim tax benefits. Once you get the possession, but if do not self-occupy it then you may still claim both HRA and tax benefits on home loan..
This question is regarding 80 E – first time home buyer deduction of extra 50,000 INR..
I bought an independent house registered on April 12 th 2016… and loan sanctioned on April 2nd 2016….I have been told that I cannot avail this deduction as it is rented and 80 E is only for self occupied properties…can u pls confirm
This Section does not specify if a house should be self occupied or let-out to claim the deduction.
The house should be a residential property and it is your first property..
I believe you can claim tax deduction u/s 80ee.
Thanks Sreekanth…Really appreciate your quick response.
I beleive I need to file revised Tax returns as I already filed it… Wanted to check if you a services of Tax planning and Financial planning. Would be keen to enroll and leverage.
Dear Ram ..I have recently stopped offering one to one Financial planning services.
You may post queries here or at our Forum section ..
Thanks Sreekanth… I have been following ur blog and its very nice..would really be grateful if u start of ur Tax services again.. I would like to enroll…
My query for today is as an Individual tax payer if I start Ecommerce bussiness and make loss oout of it ….say i invested 2 lakhs for buying material and loss of 1 Lakh is there can I get this 1 lakh deducted from 3 lakhs (assumption: tax which I am paying this year)…
Thank you for following my blog posts!
You need to calculate your Profit & Loss statement and calculate your tax liability.
In FY 2016-17, I with my spouse took a housing loan for our first apartment which is under construction. The apartment is in my spouse’s name. I fulfil all other conditions of Sec. 80EE such as loan amount, cost of flat etc. Can I claim rebate admissible in AY 2017-18 under Sec. 80EE when:
– house is under construction;
– the apartment is in my spouse’s name;
– we can’t claim any rebate on interst under Sec. 24 since construction is not complete.
I may mention here that one blogger writes that rebate can be claimed since there is no mention of completion/ occupation or resident/non-resident under Sec.80EE.
Please reply early. Regards.
Dear Mr Sachdeva,
Yes, you can claim tax rebate u/s 80EE even for an under-construction property.
That’s good news…. Thanks and regards for prompt response.
1.what is functional pay. Is it exempted from IT. If so what is the limit.
2. Our employer is showing Rs.10000/- towards conveyance every month in the salary subject to submission of petrol/diesel bills. Is it necessary to submit bills?
3.Can some amount can be shown towards food coupons in the salary? if so what is the limit and what its effects on employer
1 – I am unable to understand your query…
2 – Yes.
Maximum amount that can be invested into 80C to 80TTA.
For Central Govt Employees there is a CGHS for medical treatment by giving monthly contribution deducted from their salary. But for Retired person an additional option to pay a lumpsum amount equal to 10-year contribution for a lifelong treatment facility through CGHS. I have opted the same and paid Rs 27030 in FY 2016-17. Can I claim this amount deduction under 80D or any other head?
Dear Mr Abraham.. Any contribution to Central Government Health Scheme (CGHS) can be claimed under section 80D (subject to above mentioned ceiling limits).
Thank you, Mr Sreekanth, for this wonderful service and prompt reply.
I have come to know about rebate of Children education allowance of Rs.100 per child but My Employer (Govt office) has not given me tax rebate u/s 10(14)(ii) in the last 3 years even though I have been giving the fee slips which I am claiming for Rs.1.50 lakhs as in total deductions. Fee paid by me every year is aprox 1.80 lakhs. Kindly tell since when is the rebate of Rs.100 being allowed (FY) so that I can (if possible) claim.
So is there a way to claim the rebate of Rs.100 per child i.e. Rs.2400 as exemption for this year as well as in the last few years as there is no column to give this information in ITR-I form?
I believe that if your employer has not considered this allowance for TDS calculation, then you can not claim while filing your ITR.
Sir, I am a govt. staff. I bought 2 fully constructed houses on bank loan. 1 house in the year 2014 and 2nd house in 2016. For 1st house I am claiming as “Self Occupied”. For the 2nd house, I wish to claim “deduction of interest on housing loan under Section 24B”.
My question is, which IT Return Form should I use to fill my tax return for the FY 2017-18?
Dear RAM…For FY 2017-18 ie AY 2018-19, the relevant forms will be released during April 2018. so, it is too early to discuss on this, as sometimes Form numbers can be changed/renamed.
i HAVE RECENTLY GOT RETIRED AND GOT 700000 AS GRATUITY AND 30000 FOR LEAVE ENCASEMENT. Where should i show this tax exempted income in ITR 1
Dear Mohit ji..Kindly go through below articles, can be useful to you…
Gratuity & tax implications
Leave Encashment & tax implications
I got from the above discussions that whether it’s a first or second home and either it’s a self occupied or let-out property, the max tax exemption would be 2 Lakhs. What about tax exemption under 80C on principal paid? will it be applicable for first home loan only or we can get tax benefit for the principal amounts paid for both the homes?
Can you please explain?
Dear Chandrakant ..You can claim principal repayments on multiple homes up to Rs 1.5 Lakh under Section 80C.
I wish to know that can i have FDS for more than 4 lakh annually? Will i have to pay any tds for it if i fill 15G form. Actually, i am a housewife and i dont file ITR. Is there any problem if i do so.
thanks & regards
Dear Raghvi ,
Kindly go through below articles, can be useful to you :
Taxes on FDs/RDs
TDS & Mis-conceptions
When to submit Form 15G/H to avoid TDS?
I have spent 60000 for my wife maternity charges, under which clause I can claim Tax relief
Dear Kiran..If you get medical allowance then you can claim up to Rs 15,000 u/s 10.
Kindly read : Section 80D Medical insurance premium & Section 10 – Medical allowance
VERY NICE ARTICLES . CONTINUE THE GOOD JOB- GANESAN
very informative blog.
I am a NRI and need to fill ITR2.
I have a house which was let out for 7 months @20k/m to a tenant who left and a new tenant came in from whom I received the rent of 21k/m for 3 months till 31st march 2017. The house was let out totally for 10 months to 2 separate tenants at 2 different rents as above. my query is
1) how do I show this in ITR2? Should I show it as total of 20×7+21×3=203K and mention the 2 tenant names ?
2) or I need to fill both tenancies as separate entries?
3) If it needs to be shown as separate entries do I need to fill the same property entry twice with respective tenants info?
Looking forward to your advice on same.
I believe that there is no need to disclose it as separate entities.
You may mention it as Total rental income and do the calculation under the head ‘income from house property’.
Thanks for the informative article and answering queries!
My question is regarding the exemption limit on home loan interest for Self occupied and let-out properties.
Is the combined exemption limit 2 lakshs? Or there is a limit of 2 lakhs for self occupied and let out seperatly?
Can you quote the finance bill section under which this amendment came for FY 2017-18, so that I can mention that to our payroll dept.
Thanks in advance.
Its the combined limit and not a separate one.
Kindly read @ Financial Bill 2017 (Page no 33).
my wife had a medical treatment, shall I claim the tax for the cost of medical treatment?
Dear PSJ..If you have medical allowance as part of your salary, you can claim it.
Kindly read : Medical allowance & Medical insurance premium
Sir how much TDS deduction from my salary my salary is 12000
Dear shekar ..There wont be any TDS deduction as your expected total salary is less than basic exemption limit ie Rs 2.5 Lakh pa.
Below are my home loan deduction for this fy2017-18,
Principal component Rs. 80,230.37
Interest Component Rs. 2,58,206.56
Under Section 24, i can declare Rs 2,00,000 lakh only.
Is it possible if i declare my Principal component Rs 80,230.37 plus remaining interest component Rs 58,206.56 under Section 80c?
If above is not possible where can i declare my remaining interest component?
I took home loan in 2015 of 29 Lakhs for house value above 50 Lakhs.
Can i declare Rs 50k under section 80EE?
Is this a self-occupied property?
No, you can not club & claim the balance amount (interest part) along with principal amount u/s 80c.
Section 80EE was introduced effective 2013-14 and was available for 2 years, FY 2013-14 and FY 2014-15 only .The deduction allowed earlier was limited to maximum Rs 1 lakh in total and was available for only 2 financial years.
However, this section has been reintroduced effective FY 2016-17 (assessment year 2017-18).Now the deduction is allowed up to Rs 50,000 per year starting from FY 2016-17 and subsequent years until the loan is repaid.
Yes,its self occupied property.
Is there any section where i can declare my remaining interest component?
So i can declare 50k for fy2017-18 in 80EE section?
No other section is available.
If your loan is sanction in FY 2014-15, I am not sure if you can claim tax deduction u/s 80EE.
hello Srikant, I have few issues with my tax components, want to discuss so can you plz share your number or email id so will share.
I prefer resolving the queries through blog comments or through Forum.
Under Section 80GG: The Tax Deduction amount under 80GG is Rs 60,000 per annum. Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).
Sir I’m working in PSU NTPC limited and I’m staying in company provided third party leased accommodation, leased accommodation is taken in my name by my company and rent is provided to land lord by NEFT by my company in full. But House Rent Perk and HRR is deducting from my salary approximately deductions 10000 Rs PM.
Is my income is deductible under section 80 GG.
Thanks & regards
Arun Kumar Tak
Dear Arun ..As your company is paying the expense, I dont think you can claim it u/s 80GG.
Dear Srikanth Reddy
I am working for a pvt co and receivingRs 7.00 lakes as CTC which includes Rs0.51 lakes “Employers contribution” towards EPF and Gratuty. While Iam contributing matching amount from my salary.
Can I deduct Rs0.51 lakes salary from CTC as I am not receiving the same and claim Rs0.51 my contribution towards EPF under Sec 80c.
Kindly clarify and guide me
D/o ksudhakararao Rao
Dear Chaithanya ..You can claim your contribution to EPF scheme u/s 80c. But you cannot claim tax deduction on the employers contribution under section 80C.
Thank you for the informative article.
Have doubt on whether i can claim the interest as well HRA in the below case.
Have taken a housing loan on my first home which is far off my office and live with my parents which is near as compared to my first home. The Housing Loan was taken(sanctioned) in May ’14. As of now am paying only interest on the loan disbursed. EMI will start once possession is given which should be hopefully by Jul’17.
Given the scenario
Can i claim the interest for the given financial and for the previous financial years. if yes under which section?
Can i claim HRA as rent being paid to my Father
Can i apply for Pradhan Mantri Awwas Yojana for the given loan
Yes, you can claim both HRA and Tax deduction on home loan.
Kindly read :
Under construction property & tax implications
Income from house property & tax implications
IT exemptions list for FY 2017-18
You may check with your banker on PMAY eligibility rules.
Hi Could your please clarify SEC 24 Tax benefit on loan repayment of second house will be restricted to Rs 2 lakh per annum only. i own only one house which bought using home loan and rented out due its far off from my office and i am staying on rent near to my office. Even if its my first and only house still tax benefit on home loan interest will be restricted to 2 lakh only wef fy 17-18. Thanks and regards
Dear SRINIVAS ..Yes, it would be up to Rs 2 Lakh only.
Hello Mr Reddy,
I have doubt on House Loan repayment.
In 80C only House Loan principal is mentioned. How about the interest, cant I claim on that too ?
Is there any other tax savings tips to help me please
Dear Sujith ..The interest payments can be claimed u/s 24, part of calculation of ‘income from house property’.
Kindly read : Income from house property & tax implications..
Thanks for the detailed article. I had a question on section 80E :
What is the definition of “Education loan” under this section ? I plan to take a “loan against mortgage property” from HDFC bank to finance my son’s higher studies abroad. Would this qualify as “Education loan” and make the interest eligible for tax deduction under section 80E ?
Dear Parthasarathi ..No, it does not qualify under Edu loan.
Is Deductions under 80(G) in addition to 1.5 Lakhs under 80(C).
Also, tell me more about 80(G) in detail
Dear Manish ..Yes, it is over and above 80c. You may just google about it..
I have Flat in Talegaon ,(Outside of Pune).2 month back I change job from Talegaon to shirawal(Near to Satara).so for easy transportation I shifted to place from where I have transport facility. New place is my father’s 2nd home and I am paying rent of 500 / month to him. My question is
1) Can I claim HRA ?
2) If yes , can I provide pan card of father as land lord?
1 – Yes (do maintain rental agreement and pay the amount via cheque / online mode).
2 – Yes.
Thanks for information Sreekanth.
it means I can claim HRA as well as Income / Loss from house Property + Housing loan principle (Unde 80 C ) right?
Yes, you can claim both..
I have invested in following mutual funds through SIP in 2017 for 10 years of time horizon or can be extended up to 15 or 20 years as per priorities & responsibilities.
I am 30 years old now.
Goal 1:- Time Horizon 10 Years, Total Corpus Target 20-25 Lacs @ 20% CAGR consolidated for 6 mutual funds.
Goal 2 :- Time Horizon 20 Years, Total Corpus Target 1.50 Cr to 2.00 Cr @ 20% CAGR consolidated for 6 mutual funds.
1. DSP Black Rock Tax Saver Fund-Direct Plan-Growth Option (SIP 1000/-p.m)-ELSS Tax Planning- First SIP Date 07.05.2017.
2. Kotak Select Focus Fund Direct Plan-Growth Option (SIP 500/-p.m)-Large Cap-First SIP Date 10.05.2017.
3. Kotak Tax Saver -Direct Plan-Growth Option (SIP 500/-p.m)-ELSS Tax Planning-First SIP Date 10.05.2017.
4. Birla Sun Life Tax Relief 96-Direct Plan-Growth Option (SIP 1000/-p.m)-ELSS Tax Planning-First SIP 01.05.2017
5. Reliance Small Cap-Direct Plan-Growth Option (SIP 1000/-p.m)-Small Cap- First SIP Date 10.06.2017.
6. Mirae Assent Emerging Blue Chip Fund-Direct Plan-Growth Option (SIP 1000/-p.m)- Mid Cap-First SIP Date 01.06.2017
Q1. How would you rate this portfolio?
Q2. Is this goal achievable? I can increase existing investment by 20% annually?
Q3. Please suggest few more funds for my brother separate investments for same time period and same objective and same investment amount he is 28 years old?
Q4. How we can achieve 20 years target in 15 years?
As you have very long-term goals, you may allocate slightly higher amounts to mid/small cap funds.
Is tax saving one of your investment objectives?
Kindly go through below articles and you may revert to me with your analysis ;
Retirement goal planing & calculator
Kid’s education goal planning.
MF portfolio overlap analysis tools.
How to pick right mutual fund Schemes?
Best Equity Mutual funds.
Thanks for your suggestions!!
1. I have few more queries.
1.1. How much percentage of overlapping is acceptable?
1.2 If we would be having portfolio in Large Cap/Mid Cap/Small Cap funds so consolidated overlapping can be reduced?
2. Yes you are right Tax saving is other objective of this investment with long term capital gains “Higher Returns with Lower and Average Risk” have considered.
3. As you have suggested I can include slightly higher amounts in Mid Cap and Small Cap Funds?
So I have shortlisted few funds, could you please suggest any five mutual funds? I want to invest 1000/- in each for my younger brother.
I have analysed their overlapping in same categories of mutual funds?
And I have kept the view of Standard Deviation, Alpha, and Beta & Sharpe Ratio as well.
1. Mid Cap Funds
1.1 Birla Sun Life Pure Value Fund
1.2 UTI Mid Cap Fund
2. Small Cap Funds
2.1 Birla Sun Life Small & Mid Cap
2.2 Franklin India Smaller Companies Funds
3. Tax Saver
3.1 Mirae Asset Tax Saver Fund
3.2 Axis Long Term Equity Fund
3.3 Reliance Tax Saver Fund
1 – Overlap : There is no thumb rule, but any high overlap say 60% is not beneficial to have both the funds in the portfolio.
2 – Mid cap category : UTI mid cap is fine. There are better funds than Birla pure value fund. Ex : Mirae emerging bluechip or HDFC mid-cap opportunities fund.
Small cap : Birla Small & mid cap, may not be a great choice.
ELSS : kindly read – Best ELSS Tax saving mutual funds.
Is ULIP a good option to invest?
Dear Kapil ..May I know your investment objectives, financial goals and time-frame??
I really appreciate you r hard efforts…very descriptive information for AAM admi.
I want to clear information form tax credit 87/a
Taxable gross 350000 mins
total tax amount is 5000 and credit in 2500 balance tax amount is 2500
but my taxable gross is 525000
total tax amount 17500, that case credit applicable or not
I was under the impression that tax exemption is only 1.5 L totally. Can i also get exempted more than 1.5 L other than 80c isn’t? Thank you for your time.
I am paying LIC Premiums of my parents. Can I claim premium paid for my parent? If yes, then under which section?
Dear Rajiv .. Life Insurance premium paid on parents is not eligible u/s 80-C.
Thanks Sreekanth, Even though my parents are dependents, still I am not eligible for claim. Please suggest.
I have a flat co owned by my wife bought thru bank loan (wife Co applicant). Rent received by wife thru bank which I have been adding with my income for tax purpose. Iam a govt employee. Wife housewife and no other income except some amount of FD interest which waved off thru. 15,G. Can my wife (pan card holder,) file IT return separately from this fy so that I have some tax relief.
If the property is jointly owned one, both of you has to declare the rental income.
Read : Do I need to file ITR?
i have paid my fathers medical LIC policy premium, so could i claim for tax exemption.
fathers age 59 (he have other source of income but it less then 1 lac per year)
Dear meiyarasan ..Is it life insurance or health insurance premium?
(Section 80c or 80d)
Dear meiyarasan ..Yes, you can claim tax deduction u/s 80D.
Read : Section 80D tax benefit..
thanks a lot sreekanth
Hi Sreekanth, I am staying in rented accommodation near to my office in Gurgaon. I am planning to purchase a flat with home loan in outer Gurgaon (20 km away from my office) and put that flat on rent. If I declare rented income as income from other source, then can I take benefit of both HRA and home loan interest?
You can claim both HRA and tax benefits on home loan, however you need to declare the rental income under ‘income from house property’ and not under the head ‘income from other sources’.
If my wife is co-applicant in home loan and our rented property is registered in joint name, Can each of us show 50% of rental income to save income tax. For example if annual rental income is 2L, then we have to show 1L each or it will be in proportionate to amount of share in home loan?
Dear Rohit ..Yes, you can declare Rs 1 Lakh each (if there is no specific mention of ownership shares in the Sale deed).
i paid premium of Life insurance policy which is my wife’s name . from my salary, can i elegible to take a benifits u/c 80 c. my wife is a housewife and no source of income.
Dear Sushil ..Insurance premium paid for yourself, your spouse or your children is allowed as deduction under section 80C
I have a self occupied home on which I have taken a joint loan with my wife. we claim 2L each as tax benefit last fianacial year. We are planning to buy another house with joint loan for renting it out. with restpect to new tax rules how much we can claim tax benefit? is it 2L each for self occupied and the 2 lakh each for rent out property or , it is 2 lakh each for self occupied and 2 lakh overall for ( split between me and my wife) for rented out property?
Both of you can claim max Rs 2 Lakh (on both properties) each.
My question is regarding HRA.
From this year onwards any kind of verification is going to happen? We have heard lot of news about it.
The place where I stay is rented one which belongs to one of my uncle.Is that totally fine if I provide PAN of my uncle while submitting HRA as he doesn’t have any other source of income.
Also let me know what can be done in the scenario if an employee is paying rent for himself/herself and paying the rent for his/ her parents in other city?
Yes, there has been few Cases where IT dept has disagreed to accept claims related to Rent receipts (HRA).
It is always advisable to make only genuine claims wrt to tax deductions..
Paying rent for himself?
Kindly get Rental agreement done with your Uncle/Parents. You have to make sure that you pay the rent to their respective bank account(s) only.
I have taken home loan for current financial year with my wife as co-applicant. Will both of us will get exemption on payment of interest upto Rs.2 lakhs each from this financial year onwards.
Dear RAKESH ..Yes..provided both of you are Co-owners of the property.
Is the 2 lakh limit under Section 24 only applicable from the second home onwards? Suppose i buy a first home, and rent it out. can i take unlimited benefit on interest expense?
Dear Pravin ..No, in that case too, the loss will be limited to Rs 2 Lakh only and the balance can be carried forward..
Educative, Informative. Great Keep it up. I have bookmarked the article for future use
Thank you dear Uteesh.
Keep visiting ReLakhs and kindly share the article(s) with your friends!
I have PF which is amounting to 1.5L apart from this can I still claim 1.5L in NPS : under 80CCC – Pension Fund Contribution?
Dear K ..No, the aggregate amount under 80C+80CCC is Rs 1.5 Lakh only.
Ooh.. ok.. Thank you very much for the clarification
I believe we can claim upto Rs. 50000 on top of 1.5L through 80CCC (NPS)
Please ignore my previous post.
80CCD (NPS) is allowed Rs.50000 on top of 1.5L (80C+80CCC)
I have a row item of 10k showing in my salary structure of CTC, which goes as a premium to a Company Medical Insurance. This amount does not show in my Income under salary head in Form 16. Can I still use this 10k for showing a deduction under 80D?
If Rs 10k is a deduction from your salary, you can claim it as a tax deduction u/s 80D.
Please reply for my few queries if possible
1 ; This FY year i have expand more than one lakh for my fathers critcle dease, then how much amount i can take rebate?
2; I have taken rebate in last two years 12 & 19 thousands respectively in 8 years now this year i want to take 47k rebate refund ?
3;After how much years we can sell out flat to avoid extra taxes.
1 – Do you receive medical allowance in your Salary (if salaried)?
Kindly go through Section 80DDB and its eligibility criteria..
2 – I dint get your point/query..??
3 – What do you mean by extra taxes?
Kindly read: Long term capital gain taxes on sale of property
As per your query
1- I am getting 60k annual medical allowance and claimed 60k
2- I am saying about as i am working from last 8 years but only claimed last 2 years 19k and 12 k in LTA.
is i am able to take lta benefit this year also because i heard LTA provided in 4 years block 2 times till 48000k.Even it can be carry forward if not claimed in any block(4year).
3- extra taxes means long term , short term gains or any other taxes if home loan and rebate taken in past.
1 – One may avail for reduction in the taxable income for a maximum of or up to Rs 15,000 for medical expenses during each financial year.
2 – Ok.LTA tax exemption can be claimed twice (two journeys taken) in a block of four calendar years. That means, the current block of four years is 1st Jan 2014- 31 Dec 2017 block.
If you went only on one vacation in these four years, the other one can be carry forwarded on the next 4-year block, but this must be claimed in the first year of the next block, meaning by 31 Dec 2018.
3 – Kindly read : Different Asset classes have different Tax implications – How Returns are taxed?
Home loan1 has 1.43 lakhs interest and 1.25 lac prinicpal ( which i claim as self occupied)
Home loan2 – i pay 7 lacs interest and 5 lacs principal (and rent received 15K/month – 30% ) accounted and remaining comes around
= 5.75 lacs interest and 5 lacs prinicipal
so myself claim total interest = 3.43 L , principal 1.5 L ( not sure i can claim principal from 2nd HL or i will be capped from 1.25L )
my wife claim interest = 2 L , principal 1.5L ( not sure my wife can claim both principal and interest even though for her its 1st HL).
With the above conditions can you suggest best way to claim the 2 home loans from both of us, we pay heavily the interest( close to 9.43L interest + 6.25L as principal) to the banks need good suggestions to override accounting the changes in this budget.
You can claim principal repayment of up to Rs 1.5 Lakh u/s 80c. And interest payments of up to Rs 2 Lakh only can be claimed (both properties put together) and the remaining unclaimed loss has to be carried forward to next assessment years.
Same would be the case with your spouse, if she is a joint borrower/owner.
Hello Shrikaanth R
Really very well drafted Article. Very useful to plan and explain it to Employees.
All the very Best!
Thank you dear Hema.
You may kindly suggest your friends / team to go through other related articles as well.
Keep visiting ReLakhs 🙂
Hi Sreekanth, Hope you’re doing well.
I’ve few queries on Income tax :
1- My CTS is 10 Lakh
2- My savings / rent details are below
a- LIC (Brila Vision Lifeincoe) – 39,400/yearly,
b-ULIP (HDFC Click 2 Protect) -48,000/yealy
c- Company PF – 39060
d- PPF – 10000
e- Rent – 10000/ Month
f- 3 Lakh medical cover from company
Planning to take Term plan ( 1 Cr life cover), earlier I took it but that I’ve cancelled due to wrong info.
I can’t take home loan due to family responsibilities.
Could you pls suggest me in which section like (80 EE/ 80 GG) I can invest some money to save more tax.
Thank You !!
What is 2.a . product?
Tax saving should not your starting point to plan investments.
May I know your financial goals / objectives?
I have provided almost all important sections in the above article, you may refer to them…
I bought a house in Noida, Builder got CC so he offered fitout based possession, i moved in in Jan 2017. This is my first property. No registry happened yet, not sure if registry will happen in FY (2017-2018) also. My questions are:
1. Can i claim “Repayment of Principal Amount on Housing Loan” under 80C?
2. Can i get benefit under 80E for payment of Interest.
3. I work in Gurgaon, can i get benefit of HRA also?
1 & 2 – No, as the registration is yet to happen. (It is sec 80EE and not 80E).
3 – If you are using the property for self-occupation, you can not claim HRA.
Hope everything is going well with you. I’ve a query related to section 24B.
If I’ve a house in Hyderabad and it’s the only house on my name, can I still claim the interest loss on house property by giving it as let out property or My tax exemption in this case is also limited to two lakhs ?
Please clarify. I’m confused because in your article it is mentioned about the change in rule for second house onwards.
BR, Srikanth Varma
All is well! thank you!
Trust the same with you.
It is limited to Rs 2lakh only and the unclaimed loss can be carried forward.
Thanks for your reply Sreekanth.
To conclude, whether it’s a first or second house and either it’s a self occupied or let-out property, the max tax exemption would be 2 Lakh. (Irrespective of number houses total income loss on house property would be 4Lakhs (2Lakh on 1st house + 2 Lakhs on rest of the houses).
This is too bad. Lot of my friends (including me) will be greatly effected by this. It should have been for the loans taken on or after April 1st 2017. A lot of us take large amounts on home loans considering the fact that we can save a lot on income taxes.
This is kind of a unprecedented burden as we can’t clear this large loan and can’t keep it with loss of IT benefits.
What’s your view on this move?
It is Rs 2 Lakh and not Rs 4 Lakh.
May be, yes, the amendment could have been for the loans taken from FY 2017-18 onwards and not retrospectively.
Happy Ugadi to you and your family and relakhs.com
Thank you so much dear Raj..
Wish you too the same, happy Ugadi!
Hi , I want to know more about section 80GGT as my husband is working in a NGO n doesnt get any HRA nor do we own a house. Kindly advise
Dear Suchita ..Are you referring to 80GG?
For more info on Section 80GG, you may go through this link..
Its really good read this blog, i have very less knowledge about Mutual Funds, and Iam very interested to invest in it, i can invest Rs.12,000/- per month, for next 15 years, to take care of my kids education & marriage etc.
please suggest where to invest how much to invest
thanks in advance
Kindly go through below articles and you may revert to me if you need more info;
Kid’s education goal planning.
List of best investment options.
Best Equity funds.
How to select right mutual fund schemes?
I own a house in my home town now residing in quarters owned by my company for which they add perks in my salary.kindly let me know whether there is any section in IT act where present perks can be exempted while filing ITR so that I can claim any refund if any and I don’t have any housing
May I know what kind of Perks are they?