ITR filing: It would be naive to just base the decision of a home purchase simply on the amount of income tax that a person saves, believe tax and investment experts
ITR filing: It would be naive to just base the decision of a home purchase simply on the amount of income tax that a person saves, believe tax and investment experts
Advising income tax payers to look at other tax saver options while planning for their income tax return filing; Shruti Khandare, CMO at MyFundBazaar India Private Limited said, “If you are falling in income tax slab of 30 per cent, then buying a home to avoid tax is advisable. In the case of income tax slab falling around 10 per cent to 20 per cent, one should look at buying individual medi-claim for his family including his senior citizen parents. This will enable him to claim income tax exemption on annual medi-claim premium paid up to ₹75,000. Additionally, you can go for NPS investment as well as it allows an additional income tax exemption under Section 80 CCD on investment up to ₹50,000 in a financial year.”
Speaking on income tax benefits available on home loan EMI repayment; SEBI registered tax and investment expert Jitendra Solanki said, “While paying home loan, a taxpayer can claim income tax exemption on up to ₹3.5 lakh taxable income in one financial year — up to ₹1.5 lakh exemption on home loan principal repayment under Section 80C of the Income Tax Act and up to ₹2 lakh on home loan interest repayment under Section 24(B) of the Income Tax Act. However, if the taxpayer is a salaried person, then in that case claiming home loan tax benefit of ₹1.5 lakh on home loan principal repayment becomes difficult as tax benefits under Section 80C includes other exemption like provident fund, ELSS mutual fund investments, LIC premium payment, school fee paid for children, etc.”
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