Tax benefits on home loans: Sections 24, 80EEA and 80C, Home loan repayment consists of 2

 components i.e. principal repayment and interest repayment.

Home loan tax benefits

The following are the benefits of a home loan that can be claimed: -

Section	Deduction allowed	Allowed for
Section 24	Rs. 2,00,000	Interest repayment
Section 80C	Rs. 1,50,000	Principal repayment
Section 80EEA	Rs. 1,50,000	Interest repayment

These sections under which tax benefit can be claimed on home loans are explained below: -

Section 80C: Home Loan Tax Benefit (Basic Amount)

The amount paid by an individual /HUF as principal repayment of a home loan is approved as tax exemption under Section 80C of the Income Tax Act. The maximum is Rs. 1.5 Lakh as the principal amount U/s 80C.

 

This tax deduction includes the total exemption allowed under section 80C and includes the amount invested in the PPF account, tax-saving fixed deposit, equity-oriented mutual fund, national savings certificate, senior citizen savings scheme etc.

However, the repayment of the principal portion of the home loan is allowed under this section only after the completion of the construction of the home loan and the issuance of the certificate of completion.

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Moreover, if you are planning to buy a property under construction because it is priced lower than the completed property, you are also requested to note here that GST is also levied on the property under construction. However, no service tax is levied on properties on which construction has been completed.

 

Home Loan Tax Benefit (Amount of Interest)

Tax rebates on home loan interest can be claimed as deduction U/s 24 and under the newly inserted section 80EEA (as amended by Budget 2020).

 

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

Tax benefits on home loans for interest payments are approved as a rebate under Section 24 of the Income Tax Act. It has been taken for the purpose of  construction/repair/renewal/restructuring of the property.

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The maximum tax deduction allowed under section 24(b) to a maximum limit of Rs. 2 lakhs

 

In addition, if the acquisition/construction of the property is not completed within 5 years from the end of the financial year taken, then the interest benefit, in this case, will be reduced from Rs. 2 lakhs to only Rs.50000 (The limit has been increased from 5 years to 5 years from F.Y2019-20).

 

The Finance Act 201, promulgated on February 1, 2001, has the maximum loss limit under head house property that can be set off from other income heads. From the financial year 201-1 financial year, the maximum loss is allowed to set off Rs 2 lakh with income from other heads. The amount that is not set off will be carried over to future years.

 

These new provisions inserted in the Income Tax Act is explained very nicely in this link - the cure of rate property from income tax property.

 

Section 80EEA: Income tax benefits on home loan (first-time buyers) interest

An interest rebate may be claimed under Section 80 EEA which is higher than the sanctioned rebate claimed under Section 2 under Section0 Taka. On discounts of Rs 2 lakh and above. 1.5 lakh sanctioned under section 80C

 

This reduction of section 80EEA will be applicable only in the following cases: -

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

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2. Loans should be approved between 1 April 2019 and 31 March 2021.

The above 3 sections relating to tax benefits on home loans have been summarized as follows: -

Particulars	Quantum of Deduction (Rs.)
	Self Occupied Property	Non-Self Occupied Property
Section 24	2,00,000	No Limit
Section 80C	1,50,000	1,50,000
Section 80EE	1,50,000	1,50,000

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On October 06, 2021 by www.taxexcel.net

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The Finance Department of West Bengal has changed the Pension Form Single comprehensive Form w.e.f .2^nd February 2021. The Modified Format of Single Comprehensive Form has changed vide Memorandum No.40-F(Pen) Dated 2^nd February 2021 which is given below  

  

Government of West Bengal

Finance Department

Pension Branch

Writer’s Buildings’, Block-IV, 2'i Floor Kolkata — 700001

 

No. 40-F(Pen)                                      Dated Kolkata, the 2"‘ February 2021

 

MEMORANDUM

 

Modification in the Single Comprehensive Form in connection with the sanction of pension to the State Government employees

 

The revision of Pay anal Allowances on the  basis of  recommendation of  the Sixth Pay Commission has necessitatec4 some  modification  in  the  existing  Single Comprehensive forum’ introduced  Finance Department Memo No. 416-F (Pen) dated 09.08.2019.

 

2.         After careful consic4eration of the matter anal with due consultation with the office of the Principal Accountant General (A & E), West  Bengal,  the Governor  has now been pleased to prescribe a notified Single Comprehensive Form ‘which is enclosec4. This Form will replace  the  existing  Single  Comprehensive  Form under Finance Department Menlo No. 416-F (Pen) dated 09.08.2019.

 

3.         All Pension Sanctioning Authorities under this Government will use this Form with immediate effect. Accordingly, all Departments / Directorates / Collectorates etc. are requested to circulate this form along  with this Memo among all subordinate offices under their control.

 

4.         Formal amendments to the West Bengal Services (Death-cum-Retirement Benefit) Rules, 1971 will be made in clue course.

                                                                                                Sd/- 

                                                                        Deputy Secretary to the Govt of West Bengal             

                                                                 

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On October 05, 2021 by www.taxexcel.net

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Exemptions under 80C, 80CCC and 80CCD for F.Y 2021-22 or A.Y 2023-24 (with budget amendments). Deduction in Section 80C, 80CCC and 80CCD for F.Y 2021-22. In this article, you can get a complete description of how you can avail of discounts under 80C by investing in government schemes. Now see more details for cutting under section 80C for A.Y 2022-23 from below

Deduction under Sections 80C, 80CCC, 80CCD (1) 

Section 80C

Life insurance premium

Funding

Subscription to specific equity shares

Salary

National Savings Certificates,

Principal of Housing Anne

Various other items

The combined discount limit is Rs. 1,50,000

 

80CCC

Annual plan of another insurer towards LIC or pension scheme

 

80CCD (1)

Central Government Pension Scheme

 

80CCD (1B)

Reduction in payments made under the Central Government Pension Scheme, excluding exemptions, claimed under 80CCD (1)

Money discount limit 50,000

 

80CCD (2)

Reduction for the contribution made by an employer to the central government's pension scheme

If the employer is a Publick or Private sector or any state government or others

10% discount limit on salary

If the employer is the central government

14% discount limit on salary

 

80CCD (1B)

 

80CCD (2)

Reduction for the contribution made by an employer to the central government's pension scheme

Deductions on Sections 80C, 80CCC, 80CCD and 80D

There are 80HH, 80RRB, 80U and many more discounts from 80C to 80U under Chapter VI-A. But this article is only for cuts that come under 80C.

 

You can claim deduction under section 80C as follows:

An assessor can claim a rebate of Rs 1.5 lakh for your total income under section 80C. Simply put, you can deduct up to Rs 1,50,000 from your total taxable income and it is available to individuals and HUFs.

 

The total discount amount between 80C, 80CCC, 80CCD and new section 80CCE is limited to Rs.1,50,000.

 

Section 80CCC - Insurance Premium (Discount for a premium paid for LIC or other insurer's annual plan)

 

Section 80CCD - Pension contributions (deductions for contributions to the pension account)

Deduction Section 80 TTA - Interest on Savings Account (Deduction from Total Income for Interest on Savings Bank Account)

 

Section 80GG - House rent paid (Discount for house rent where HRA is not available)

 

Deduction U/s 80 80C

 

You can avail of discounts under 80C by investing in the following schemes.

 

1. Pay for life insurance premiums.
2. Payment for delayed anniversary plans.
3. A delayed annuity is payable by the government.
4. Contribute to the Public Provident Fund.
5. Contribution to the Provident Fund set up by the Central Government.
6. Subscription to any security or deposit advertised by the government.
7. Savings Certificate Subscription.
8. Contributions to recognized provident funds.
9. Contribute to a recognized retirement fund
10. Subscription for Unit Linked Insurance Plan 1971.
11. Contribution to LIC Mutual Fund Unit Linked Insurance Plan.
12. Payment for LIC or any other insurer's annual plan.
13. Subscriptions to advertised mutual fund units.
14. Contribution of Mutual Fund to Notified Pension Fund.
15. The Pension Fund established the National Housing Bank.
16. Subscription to the deposit scheme of a public sector company engaged in long-term payment for housing.
17. Tuition fees for two children in India.
18. Payment of installments for self-financing of a residential property.
19. Subscription to equity shares or debentures as authorized for infrastructure.
20. Subscription to any unit of Mutual Fund approved by Central Board of Direct Taxes

21. Fixed deposit more than Five-year under the Post Officer Time Deposit Rules, 1981.

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On October 04, 2021 by www.taxexcel.net

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Online Income Tax Calculator A.Y 2022-23 by Pranab Banerjee

Opted for Sec. 115BAC	NoYes
Select Status	Resident < 60 years>= 60 < 80 years>= 80 yearsHUF / NRE
Income
Eligible Deductions
Taxable Income
Income Tax
Surcharge
Education Cess
Total Tax Liability
Use Detailed Income Tax Calculator

On October 03, 2021 by www.taxexcel.net

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 Income tax planning. Planning of proper Tax savings is almost indispensable for the F.Y.2021-22

 

Although tax evasion is difficult, you can still have effective tax evasion strategies

Two important steps

 

1) Choose between the old tax (with deduction) and the new system of governance (without exemption)

One has to analyze carefully and compare the tax deduction and consider other factors to choose between the two.

 

2) inform your employer (so they have to deduct TDS based on your choice)

Tax Saving Tips: -

1. Additional tax savings with NPS under section 80CCD

In addition to deductions under Section 80C of Rs 1.5 lakh per annum, you can claim additional tax exemption under Section 80CCD (1B) with an additional 80% grant. 50,000 in your NPS account.

Example: -

If the taxpayer is subject to% 0% tax, then additional tax benefit =

50000 * 30% = 15,000 + 4 Education cess = Rs. The amount of tax is 15,600.

 

2. House rent allowance

Who lives in a rented home, and then you can help save tax through HRA. The maximum amount of HRA discount: - Less of the following

a) Obtained actual HRA

B) 40% (Non Metro) / 50% (Metro) (Basic Salary + DA)

c) 10% less than actual rent (basic salary + DA)

Note: - If you rent a house and pay more than Rs 1 lakh per annum - do not forget to provide the landlord's PAN to claim an HRA discount.

 

A clear reading of Circular No. 01/2019 dated 01 January 2019 and Form 12BB proposes that a limit of Rs. 1 lakh is applicable for each landlord.

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If you pay rent for a residential home + do not receive an HRA from your employer + you or your spouse or your minor child does not currently own a residential home where you live

You can then claim a deduction under section 80GG.

Minimum cuts under this section will be considered as:

A. 5,000 per month;

B. 25% of total gross income *;

C. 10% less than the actual income including actual rent (ATI)

ATI = Total income less short term capital gain, short term capital gain under section 111A and income under section 115A or 115D and deduction from 80C to 80U (excluding deduction under section 80GG)

 

3. Child Education Allowance:

Maximum discount. 2 children (Rs. 100 per month)

 

4. Employees are provided free food and drink:

It can also be given in the form of food/food coupons to employees like Sodexo.

Amount discount up to Rs 50 per meal.

Example = Eat 25 working days a month and 2 meals a day

Discount amount = 25 * 50 * 2 = 2,500 per month

 

5. Hostel Expenses Allowance:

Maximum discount. With 2 children (Rs. 300 per month)

 

6. Leave Travel Allowance (LTA): -

Discounts are only available for travel expenses (the employee is going anywhere in India with his family) and not for local transportation, sightseeing, hotel accommodation, meals, etc.

Exemptions are only available at actual travel costs, such as air, rail or bus fares charged by the employee.

Discount is available only due to submission of expenditure bill.

 

7. Employer's Contribution to PF and NPS: -

Employer's contribution to NPS and EPF is tax-free up to 12% of basic salary.

 

8. Standard deduction

For all salaried individuals, a standard discount of Rs 50,000 is available.

 

9. Employment / Professional Tax: -

The amount paid in a year is deductible.

 

10. Exemption under section 80C

The most popular and it allows discounts up to Rs 1.5 lakh. The taxpayer may deposit in PF, ELSS, FD, NSC, NPS, Life insurance. Apart from that, one can also claim the basic payment of a home loan, tuition fee and stamp duty under this section.

 

11. Exemption under section 80D

This department offers a discount for medical insurance premiums paid for oneself, family and parents.

 

People under the age of 60 can claim Rs 25,000 for themselves and their families and Rs 25,000 for their parents (if they are under 60).

 

12. Discount for interest on the second 80E of education loan

Interest paid on loans taken for the higher education of oneself, wife or children can be claimed on a real basis.

 

13. Section 24(B) - Interest on home loan deduction

It offers a discount of interest on home loans up to Rs 2 lakh for self-occupied houses and houses that will be vacated, there is no limit to claim interest discount.

 

14. Section 80EEA- For first-time homeowners

This section offers a discount of Rs 1.5 lakh, which means you can technically increase the upper limit for self-occupied houses to Rs 3.5 lakh (deduction of interest on the home loan which will be more than the discount available under section 24).

 

15. Section 80TTA tax savings on interest earned in a savings bank account.

Interest earned- Post Office Savings Account of Bank Savings Accounts Cooperative Society.

The maximum discount limit under this section is Rs. 10,000

80TTB: - Senior citizens can claim up to Rs 50,000 as tax exemption.

 

16. Tax savings on repayment of an education loan under section 80E: -

You will get tax benefit on the  interest component of the loan taken for higher education and there is no limit.

 

Paying interest could be a parent or student.

Taxpayers can claim a tax deduction for up to 8 fiscal years from the year of commencement of interest payments on the education loan, or until full interest is paid, whichever is earlier.

 

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On October 02, 2021 by www.taxexcel.net

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