How to maximize tax benefits on a joint home loan, With Automated TDS on Salary for West Bengal Govt Employees for F.Y.2017-18

Generally all of us think that taking a loan to buy a residential property is not a good idea and so, they start saving some amount from their monthly income into recurring investment or a Systematic Investment Plan (SIP) offered by mutual funds. But the financial planners recommend that for acquiring a house for self use, one should go for a housing loan and pay EMIs in place of going for recurring investment or SIP in other investment product.

Download Automated Income Tax Preparation Excel Based Software All in One TDS on Salary for West Bengal Govt employees for F.Y.2017-18.

·This Excel Utility can prepare at a time your Tax Computed Sheet

·         This Excel Utility can prepare at a time your House Rent Exemption Calculation U/s 10(13A)

·         In build Salary Structure as per W.B. Govt Employees Salary Pattern

·         Automatic Prepare Form 16 Part A& B for F.Y. 2017-18 as per new Tax Slab

·         Automatic Prepare Form 16 Part B for F.Y. 2017-18 as per new Tax Slab

·         Automatic Convert the Amount to the in-Word

A payee can get income tax benefits through home loan under two different Sections of Income Tax Act.

1. Under Section 24– Deduction on interest on home loan for self-occupied property up to Rs 2 lakh.
2. Under Section 80C– Deduction on repayment of principal amount on home loan up to Rs 1.5 lakh. 

Tax Benefits under Section 24 and Section 80C: Mr. X is eligible to claim tax benefits under Section 80C for the principal repayment of the home loan and under Section 24 for interest components. He can claim deduction up to Rs 1.5 lakh along with all other permissible instruments like, life insurance premium, PPF, ELSS, NSC etc under Section 80 C and up to Rs 2 lakh under Section 24 B.

Total deduction will be Rs 3.5 lakh and if Mr. X is in the highest income tax slab, he will get a income tax benefit of Rs 1,05,000.

Income Tax Benefits on Joint Home Loan: One can avail income tax benefit on home loan up to Rs 1.5 lakh under Section 80C and 2 lakh under Section 24. But if you go for a joint home loan along with your spouse in the ratio of 50: 50, then both of you can claim these benefits separately. So the combined limit will be Rs 3 lakh under Section 80C and 4 lakh under Section 24. This can reduce your overall cost of loan for the family considerably.

Total deduction will be Rs 7 lakh and if both spouses are in the highest income tax slab, they will get a income tax benefit of Rs 210000/- which is just double compared to an individual home loan, although this provision may vary from person to person.

Before going for a joint home loan, you should mutually work out your ownership share if you wish to optimize the income tax benefit. That is, if you and your spouse own the house jointly in the ratio of 50:50, both can claim deductions in equal proportion. Therefore, if your income tax slabs are different, you need to work out your ownership share in a manner that the spouse in the higher income tax bracket owns a bigger share.

Please note that it is essential to be co-owners to be eligible for income tax benefits. The co-ownership share also plays a role in determining your deductions.

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No need to Login in Income Tax e-Filling Portal for Linking PAN to Aadhaar which is now compulsory. Here's how to do it without Login Income Tax Portal

If you have not linked your Aadhaar with your PAN on the income tax portal yet, you should not delay it. As per latest circular from income tax (I-T) department, it is now mandatory to provide Aadhaar and permanent account number (PAN) details while filing tax returns. The Notification of the Central Govt. is given below:

  

          Government of India

          Ministry of Finance

       Department of Revenue

    Central Board of Direct Taxes

New Delhi, 5th April 2017.

      PRESS RELEASE

Mandatory Quoting of Aadhaar For PAN Applications & Filing Return of Income

Section 139AA of the Income-tax Act, 1961 as introduced by the Finance Act, 2017 provides for mandatory quoting of Aadhaar / Enrolment ID of Aadhaar application form, for the filing of return of income and for making an application for allotment of Permanent Account Number with effect from 1st July 2017.

It is clarified that such mandatory quoting of Aadhaar or Enrolment ID shall apply only to a person who is eligible to obtain Aadhaar number. As per the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, only a resident individual is entitled to obtain Aadhaar. Resident as per the said Act means an individual who has resided in India for a period or periods amounting in all to one hundred and eighty-two days or more in the twelve months immediately preceding the date of application for enrolment. Accordingly, the requirement to quote Aadhaar as per section 139AA of the Income-tax Act shall not apply to an individual who is not a resident as per the Aadhaar Act, 2016.

(Meenakshi  J. Goswami)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT.

The rule which will be applicable from July 1, 2017, is aimed at tax evaders who hold multiple PAN cards to escape paying tax. Therefore, after linking both the Aadhaar and PAN, the government hopes to keep tabs on the taxable transactions of a particular individual or entity, whose identity and address will be verified by his Aadhaar card 

     How to do it without Login Income Tax Portal

1) The first go to the Income Tax Department Web Site https://incometaxindiaefiling.gov.in  and select the e-Filling Option

2) After clicking the e-Filling Tab, a new window will appear as below snapshot

Just Click the OK Tab.

On logging in to the site, a pop-up window will appear prompting you to link your PAN card with Aadhaar card.

You can input your Aadhaar number enter ‘captcha’ code and click on ‘link now’.

In case you have decided to link Aadhaar with PAN later click on ‘later’ button.

On logging, if no pop-up window appears, go to profile Setting and click on ‘link Aadhaar’.

Enter your Aadhaar number enter captcha code and click on ‘link Aadhaar’.

The system will match your name, date of birth and gender with PAN card and Aadhaar database, if detail matches, you will get the message “Aadhaar – PAN linking is completed successfully.”

 

Around 1.08 crore assessees have Aadhaar-linked PAN but the number is abysmally low as there are over 25 crore PAN card holders in the country, while Aadhaar has been issued to 111 crore people. According to statistics with the tax department, only six crore people file income tax returns at present.

 Just fill the above mentioned Pan Number, Aadhaar Number & Name as printed as per your Aadhaar Card, the fill the properly the Image Code and Click on Link Aadhar Tab. You will be done and the link with your Pan to Aadhaar.

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