There are two components to home payment: Principal means principal's payment and repayment of interest. Since there are two separate components to the 2nd payment, the tax benefits on home loans are governed by different sections of the Income-tax Act and are subject to tax exemptions under different sections when filing an income tax return.

 

Home tax benefits

Department approved for discount

Section 24 (b) H.B. Loan Interest Max Rs. 2 Lacks

Section 80C. 1,50,000  principal payment of  H.B. Loan Principal

Section 80EEA pays 1,50,000 H.B. interest

The following are the tax benefits that can be claimed on a home under these categories: -

Category 80C: Tax benefits on home appliances (principal amount)

The amount paid by an individual / HUF as payment of the principal amount of housing is allowed as tax exemption under Section 80C of the Income Tax Act. The maximum tax exemption allowed under Section 80C is Rs 1,50,000.

You may also; Like- Automated One by One Income Tax Form 16 Part B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC 

This tax exemption is included in the total exemptions approved under section 80C and include the amount invested in the PPF account, tax-saving fixed deposits, equity-oriented mutual funds, national savings certificates, senior citizen protection scheme, etc.

 

U/s  80C is available on a pay-as-you-go basis regardless of the year of payment. The deposit as G.P.F./ V.P.F.and the registration fee is also allowed as tax exemption under section 80C even if the appraiser has not taken a loan.

 

 

However, the home loan facility under this section for repaying the principal part of the home loan is allowed only after the completion of the construction work and the issuance of the completion certificate. No waiver will be allowed for the principal's payment for the year in which the property was under construction under this section.

You may also; Like- Download &Prepare at a time 50 Employees Form 16 Part B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC 

 In addition, if you are planning to purchase an under-construction property, it is priced lower than the completed property, you are also requested to note here that GST is also levied on the under-construction property. However, no service charges are levied on properties on which construction has been completed.  

House property must be purchased or sold within 5 years

Section 80C (5) also states that in case of transfer of property of the house under section 80C, the assessee has sought a tax exemption under section 80C before the expiry of the five-year term of the financial institution owned by him. No discounts and tax benefits can be given. The total amount of total tax deductions already claimed in previous years is the property that was sold this year and the assessee will be liable to pay tax on such national income as the income of the assessee for that year.

You may also; Like- Download & Prepare at a time 100 Employees Form 16 Part B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC 

Home Benefit Tax (Amount of Interest)

The home tax benefit can be claimed as a rebate under Section 24 of the newly inserted Section 80EEA (2020 Budget Amendment) to pay interest on homeowners.

 

Section 24: Income tax benefit on interest on purchase/construction of the real estate

Tax benefits on homeowners are allowed to be exempted under Section 24 of the Income Tax Act for payment of interest. Pursuant to Section 24, the amount of interest paid on the interest on the loan taken for the purpose of

 

purchase/construction/repair/renewal/reconstruction of the property will reduce the income from the home property.

You may also; Like- Download & Prepare at a time 50 Employees Form 16 Part A&B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC 

The maximum amount of tax exemption allowed under section 24 of a self-occupied property should be a maximum of Rs. 2 lakhs (Increased from 1.5 lakhs in the 2014 budget to 2 lacks) 

 

In case of non-possession of the property for which the mortgage has been taken, the maximum limit has not been fixed in this case and the taxpayer can avail a tax deduction under section 24 of the full amount of interest. 

 

PLEASE NOTE: If a property is not self-occupied by the owner due to the fact that it is due to his job, business or profession elsewhere, he must be in a place not owned by him elsewhere. The amount of tax exemption allowed under section 24 should be Rs 2 Lacks

You may also; Like- Download & Prepare at a time 100 Employees Form 16 Part A&B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC 

It is also important to note that this tax deduction on interest under section 24 is deductible on the basis of payable, i.e. on the basis of withdrawal. Thus, a discount under section 24 can be claimed on an annual basis even though no payment has been made as compared to section 80C allowing a discount only on the basis of payment. 

 

In addition, if the property is not acquired/constructed within the acquired year from the end of the financial year in which the loan was taken, the interest benefit will be reduced from Rs 2 lakh to only Rs 30,000. (The limit has been increased from 3 years to 201 years-1. It has been five years from the financial year). 

Category 80EEA: Income Tax Benefits on Home Interest Interest (First Time Buyers)

Interest rebate can also be claimed under section 80EEA which is more than the rebate and above, Rs 24,000 / - is allowed to be claimed under section 24. Rs 2 lakh and above Rs 1.5 lakh under deduction section 80C is also allowed 

This exemption from Section 80EEA will be applicable only in the following cases: -

1. This discount will be allowed if the stamp duty value of the purchased property is less than Rs. 45 lakh. 

Interest rebate can also be claimed under section 80EEA which is more than the rebate and above, Rs 24,000 / - is allowed to be claimed under section 24. Rs 2 lakh and above Rs 1.5 lakh under deduction section 80C is also allowed 

This exemption from Section 80EEA will be applicable only in the following cases: -

 

1. This discount will be allowed if the stamp duty value of the purchased property is less than Rs. 45 lakh.

2. The note should be approved between 1st April 2019 and 31st March 2021.

Download Automated Income Tax Arrears Relief Calculator U/s89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21(Updated Version)

 

On April 21, 2021 by www.taxexcel.net

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Section 80 CCD

 

Discounts on contributions to the central government's pension scheme- Bare Act 

(1) Where an assessor, on or after the first day of January 2004, as a person appointed by the Central Government or any other employer, or as appointed by any other assessor, paid as a person in the previous year or informed by the Central Government or under the pension scheme. Any amount deposited in the account shall be allowed to be deducted from the calculation of his total income in accordance with the provisions of this section and subject to it, in excess of the total amount paid or deposited, 

You may also, like Automated Income Tax Form 16 Part B in Excel? You can download the Excel Based Income TaxMaster of Form 16 Part B for the F.Y.2020-21 [This Excel Utility can prepare at a time 50 Employees Form 16 Part B]

In the case of an employee, 10% of his previous year's salary; And

In any other case, 20% of the total income of the previous year

Any assessor referred to in sub-section (1) shall be allowed to make concessions in the calculation of his total income is there any concession allowed under sub-section (1) of the given amount? Or maybe informed under the pension scheme deposited in his account in the previous year or by the Central Government, not exceeding fifty thousand rupees:

 

Provided that no concession under this subsection shall be granted without consent in the amount of concession claimed and granted under sub-section (1).

(2) Where in the case of an assessor referred to in sub-section (1), the Central Government or any other employer contributes to his account referred to in that subsection, the assessor may be allowed to deduct his total income, the Central Government or any other employer that Amount means [not exceeded] the full amount of the amount is given by him

 

14%, where the central government makes such a contribution;

Ten per cent, where such a contribution is made by another employer in his previous salary]

You may also, like Automated Income Tax Form 16 Part B in Excel? You can download the Excel Based Income TaxMaster of Form 16 Part B for the F.Y.2020-21 [This Excel Utility can prepare at a time 100 Employees Form 16 Part B] 

(3) Any accountant referred to in sub-section (1) or sub-section (1b) has stood for the credit of the person designated in his account, in which case a waiver has been allowed under sub-section or sub-section (2) And with the money collected, if any, by the appraiser or his nominee, in whole or in part, in any previous year,

Due to termination or adoption of the pension scheme referred to in sub-section (1) or sub-section (1b); Or

 

Since the pension was taken from the anniversary plan or has been discontinued or chosen,

The full amount of the amount referred to in section (a) or section (b) shall be treated as the income of the assessor or his nominee, as may be, the amount received in the previous year, and shall be taxed according to the previous year's income accordingly

 

Provided that in the circumstances mentioned under condition (a), the amount received by the nominee after the death of the appraiser shall not be treated as the nominee's income.

You may also, like Automated Income Tax Form 16 Part B in Excel One by One [This Excel Utility can prepare One by One Form 16 Part B]

 

(4) Where any money paid or deposited by the appraiser has been approved as a waiver under subsection (1) or sub-section (1B),

 

No waiver shall be allowed with such amount in Article 88 for any assessment year ending before the first day of April 2006;

 

No deduction will be allowed under section 80 for any assessment year beginning on or after the first day of April with such an amount,

 

(5) For the purposes of this section, if this amount is used by the appraiser to purchase an anniversary plan in the previous year, it shall be deemed that no money has been collect in the previous year.

 

Note: Salary includes value-added allowance, excluding all other allowances and permits if conditions of employment are provided.

 

Note: The Central Government has notified Atal Pension Yojana as a pension scheme, the contribution of which will be eligible for exemption under 80ccd.

 

80 CCD Division Crew (1B)

 

80. Whether or not a person claims a waiver under CCD (1), Rs. 50,000 approved.

 

Note: The aggregate discount of 80 CCD (1) and 80 CCD (1b) shall not exceed the actual amount deposited or paid in the previous year.

 

Note: The amount of 80 CCD(1B) will not be considered during the calculation of the total limit of Rs.1,50,000 as described in section 80cc.

 

80 CCD Division Course (2)

Applicability

This sub-section is applicable if the employer contributes to the pension fund informed by the Central Government.

Maximum limit

1. If contributed by the Central Government as the employer

Limit 14% of salary

 

2. If covered by another employer

Restricted if covered by another employer 

Download and Prepare at a time 100 Employees Master of Form 16 Part A&B in Excel for the F.Y.2020-21 as per New and Old Tax Regime U/s 115 BAC [Who are not able to download the Form 16 Part A from the Income Tax TRACES PORTAL, they can use this Excel Utility]

On April 19, 2021 by www.taxexcel.net

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List of different discounts U/s 80C.

 

Deduction U/S 80C for life insurance premium, contribution to PF, etc. (Individual / HUF only). Find the list of income tax exemptions under section 80C. Section 80C exempts a person (a); (B) A Hindu undivided family is subject to a maximum of one lakh and fifty thousand rupees for investment in specific assets. In this article, you can get a list of discounts available only to Individuals, a list of discounts available to Individuals and HFF, other special points for seconds. 80C.

You may also, like- Automated Income Tax Revised Form 16 Part A&B and Part B for the F.Y. 2020-21 [This Excel Utility can prepare One by One Form 16 Part A&B and Part B in a single Excel File] 

Now you can scroll down and check the complete list of different subtractions under section 80C

 

You can claim a waiver under section 80C:

 

Individual discounts available only:

 

Any payment made by the individual to keep in effect a non-transportable deferred annuity agreement about the life of the individual, the husband, any child of the individual

 

Any amount deducted from the salary payable by the government for the purpose of paying the anniversary payable to him. However, the salary should not be without 1 / fifth.

You may also, like- Automated Income Tax Revised Form 16 Part B for the F.Y. 2020-21 [This Excel Utility can prepare One by One Form 16 Part B ] 

SPF / RPF contributions.

Contributions to the ApprovedApproval Fund.

National Savings Scheme Subscription.

NSC subscription, even interest in it is eligible for discount

Subscription Unit of Mutual Fund / UTI

Contribution to Mutual Fund / UTI / Pension Fund established by National Housing Bank

Submitted to National Housing Bank, HUDCO

Deposits with a PSU providing long-term financing for the construction or purchase of residential homes in India.

Deposits with notified housing boards as per law for planning, development and enlistment of towns/cities/ villages.

Tuition fees (maximum 2 children) for full-time education of children in universities, colleges, schools or other educational institutions located in India, for other development grants.

 

Accommodation / Expenses

Subscriptions to authorized equity shares or entities of a public company or a government financial institution and the entire proceeds of the issue are used in full and exclusively for power generation or infrastructure facilities companies. (Holding period minimum 3 years)

Term deposit with a scheduled bank for at least 5 years.

Notified NABARD Bond Subscription.

Deposits under the Senior Citizens Savings Scheme.

5-year time deposit in any account under Post Office Deposit Rules.

You may also, like- Automated Income Tax Revised Form 16 Part A&B for the F.Y. 2020-21 [This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B in a single Excel File] 

Other points for seconds are 80C

 

The total limit under this section is 2014-1. Fiscal year/assessment year 2011-16-1 from 1.50 lakh. 2014-1. Before the financial year, the limit was Rs. 1 lakh rupees. Many small savings scheme schemes like NSC, PPF and other pension schemes under this heading are also eligible for exemption under section 80C for payment of life insurance premiums and investments in certain government infrastructure bonds.

 

If the appraiser transfers the FP, no waiver is claimed, before the expiration of the five-year term of the fiscal year in which the owner of such national property occurs. No concession will be allowed in the house to which the house of PIO is shifted. Approved discounts in previous years will be treated as PY assessment income, where the home is relocated.

 

If a member participating in the Yule PIP terminates before the 5-year contribution, the same treatment given in point 2 will be given.

 

The deduction can be given only if the previous year i.e. 31st March or earlier is paid/contributed/invested.

Download and Prepare at a time 100 Employees Automated Income Tax Revised Form 16 Part A&B for the F.Y. 2020-21

 

On April 18, 2021 by www.taxexcel.net

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