Taking a home loan can help you save tax| With Automated Income Tax Preparation Excel Based Software All in One for the All Government & Non-Government Employees for F.Y.2021-22

 Taking a home loan can help you save tax| The repayment of a Home Loan comprises 2 components:

1. Repayment of Principal and

2. Repayment of Interest

As the repayment comprises of two different components, the tax benefit on a home loan is governed by different sections of the Income Tax Act. Following are the benefits available on loan taken on House Property which can be claimed as deductions in the Income Tax Return: 

1. Deduction on Principal Repayment (U/s 80C): The amount paid as Repayment of Principal of Home Loan taken by an Individual/HUF is allowed as deduction u/s 80C. The maximum deduction allowed u/s 80C is Rs. 1,50,000. This deduction is available on a payment basis. But to claim this deduction, the house property should not be sold within 5 years of possession. Otherwise, the deduction claimed earlier will be added back to the total income in the year of sale. 

You may also like- Automated Income Tax Preparation Excel Based Software All inOne For the Assam State Employees for the F.Y.2021-22 as per Budget 2021[This Excel Utility can prepare at a time your Income Tax Computed Sheet + Individual Salary Structure as per the Assam State Employees Salary Pattern + Automated Income Tax H.R.A. Exemption Calculation U/s 10(13A) + Automated Income Tax Revised Form 16 Part A&B + Automated Income Tax Form 16 Part B for F.Y.2021-22]

 

2. Deduction for Stamp Duty and Registration Charges (u/s 80C): A deduction for stamp duty and registration charges paid on the purchase of house property can also be claimed u/s 80C but within the overall limit of Rs. 1,50,000. It can be claimed only in the year in which these expenses are incurred.

 

3. Deduction of interest on Home loan. As per Sec 24(B), the maximum deduction for Interest payable on the Loan is Rs. 2,00,000 where the loan has been taken on or after 01-04-1999 for the Purchase or Construction of a self-occupied property and the property has been acquired or constructed within 5 years from the year in which the loan was taken. The maximum tax deduction allowed u/s 24 of interest on the loan on a self-occupied property is Rs. 30,000 where the loan was taken before 01-04-1999 or the loan was taken for repair, renewal or reconstruction. There is no maximum limit in case the house property for which the Home Loan has been taken is not self-occupied and the taxpayer can take a deduction of the whole interest amount.

You may also like- Automated Income Tax Preparation Excel Based Software All inOne For the Bihar State Employees for the F.Y.2021-22 as per Budget 2021[This Excel Utility can prepare at a time your Income Tax Computed Sheet + Individual Salary Structure as per the Bihar State Employees Salary Pattern + Automated Income Tax H.R.A. Exemption Calculation U/s 10(13A) + Automated Income Tax Revised Form 16 Part A&B + Automated Income Tax Form 16 Part B for F.Y.2021-22]

4. Additional deduction of interest u/s 80EEA: Additional deduction of interest on home loans taken from any financial institution is available to individuals up to a maximum limit of Rs. 1,50,000 provided the following conditions are satisfied:

The stamp value of the property does not exceed Rs. 45 lacs.

The loan must have been sanctioned between 1st April 2019 to 31st    March 2021.

On the date of sanction of loan, the individual does not own any other residential house property. 

5. Additional deduction of interest u/s 80EE: 

Things to Remember

Section 80EE came into effect from the financial year 2013-14. It was available for only 2 years, FY 2013-14 and FY 2014-15. The deduction allowed earlier was limited to a maximum of Rs 1 lakh in total and was available for only 2 financial years.

You may also like- Automated Income Tax Preparation Excel Based Software All inOne For the West Bengal State Employees for the F.Y.2021-22 as per Budget 2021[This Excel Utility can prepare at a time your Income Tax Computed Sheet + Individual Salary Structure as per the West Bengal State Employees Salary Pattern + Automated Income Tax H.R.A. Exemption Calculation U/s 10(13A) + Automated Income Tax Revised Form 16 Part A&B + Automated Income Tax Form 16 Part B for F.Y.2021-22]

 

However, this section has been reintroduced, effective F.Y 2016-17 (A.Y 2017-18). Now the deduction is allowed for up to Rs. 50,000 per year until the loan is repaid. Additional deduction of interest on home loans taken from any financial institution is available to individuals up to a maximum limit of Rs. 50,000 provided Additional deduction of interest on home loan taken from any financial institution is available to individuals up to a maximum limit of Rs. 50,000 provided the following conditions are satisfied:

The value of residential house property does not exceed fifty lakh rupees.

The loan must have been sanctioned between 1st April 2016 to 31st March 2017.

The amount of loan sanctioned for acquisition of the residential house property does not exceed thirty-five lakh rupees.

On the date of sanction of loan, the individual does not own any other residential house property.

Summary

Section	Nature	Maximum Deduction	Conditions
24	Interest	Rs. 2,00,000	Construction must be completed within 5 years from the end of FY in which loan was taken.
80C	Principal	Rs. 1,50,000	Property should not be sold within 5 years of possession.
80C	Stamp Duty	Rs. 1,50,000	The claim is allowed in the year of expense incurred.
80EE	Interest	Rs. 50,000	Property Value should not exceed Rs. 50 lakhs and the loan amount should not exceed Rs. 35 lakhs.
80EEA	Interest	Rs. 1,50,000	The stamp value of a property should not exceed Rs. 45 lakhs and deduction u/s 80EE must not be claimed.

Download Automated Income Tax Preparation Excel Based Software All in One for the Government & Non-Government Employees for the F.Y.2021-22 as per Budget 2021 

Feature of this Excel Utility-

# This Excel Utility can prepare your Income Tax Computed Sheet

 

# Individual Salary Structure as per the Andhra Pradesh State Employees Salary Pattern

 

# Automated Income Tax H.R.A. Exemption Calculation U/s 10(13A)

 

 

# Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E for the F.Y.2021-22

Read More

Automated Income Tax Preparation Excel Based Software All in One for the Govt & Private Employees for the F.Y.2021-22 and A.Y.2022-23 With Tax Savings Tips for the F.Y.2021-22

 

Tax savings tips to reduce your tax amount for F.Y.2021-22. Tax planning is a part of financial planning although taxes are difficult to avoid, you can efficiently devise strategies to reduce them under two important steps.

 

1) In order to choose between the old tax (with discount) and the new system (without discount) one has to carefully analyze the comparison between tax outgo and other factors.

 

2) Inform your employer (so they have to deduct TDS based on your selection) 

Tax Saving Tips 1.

 Additional tax savings with NPS under Section 80CCD In addition to the exemption under Section 80C of Rs 1.5 lakh per annum, you can claim additional tax exemption under Section 80CCD (1B) by contributing an additional Rs 60,000. 50,000 in your NPS account.

 

2. House Rent Allowance U/s 10(13A) for those who live in a rented home, then you can help save tax through HRA. The maximum amount of HRA discount: below

Got the original HRA

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

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

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

Download Automated Income Tax House Rent Exemption Calculator U/s 10(13A) in Excel.

The simple text of Notification No. 01/2019 dated 1st January 2018 and Form 12BB indicates that there is a limit of Rs.

 

If a residential home is rented + you will not receive an HRA from your employer + you or your spouse or your minor child does not have a residential home where you currently live

 

You can then claim a discount under section 80GG.

The least of these will be considered discounts under this category:

Five thousand rupees a month;

25% of total gross income *;

10% of gross income less than actual rent (ATI)

 

ATI = Total Income Less Long-Term Capital Gains, Short-Term Capital Gains under Section 111A, and Income under Section 111A or 111D and 60 UK to 80 UK Exemption (Exemption under Section 80G)

 

3. Children's allowance discount for a maximum. 2 children (Rs. 100 per child per month)

 

4. Hostel Expenses Allowance

Deduction for most. Between 2 children (Rs. 300 per child per month)

 

5. Discount Leave Travel Allowance (LTA)

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

 

The discount is only available for actual travel expenses i.e., employee-operated air, rail, or bus rentals. The discount is available only due to the submission of the expenditure bill.

 

An employer in PF and NPS Employees’ contribution to NPS and EPF is tax-free up to 12% of basic salary.

 

Standard deduction U/s 16 (ia) of Rs 50,000 is available for all salaried persons

 

Employment / professional tax is exempt U/s 16

It is important to note that if the professional tax is paid by the employer on behalf of the employee,

 

9. Deduction under the most popular of Section 80 and it allows discounts up to Rs 1.5 lakh. Like as invest in PF, ELSS, FD, NSC, NPS, life insurance. In addition to these, one can also claim payment of principal for a home loan, tuition fee, and stamp duty under this section.

 

10. Exemption under section 80D

 

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

 

Parents above 60 years of age where the exemption amount increases by another 25000 (for parents), making a total of Rs. 75000 (25,000 + 50,000)

 

And where both the individual and the parents are more than 60 years old, Rs 50,000 (for self & family) and Rs 50,000 (for parents) can be claimed.

 

 

However, it does not extend the overall exemption limit under section 80D

 

11. Exemption for interest on education can be claimed on the true basis of the interest paid for the loan taken for higher education in Section0E for self, spouse, or children.

12. Discount for grants 50-100% discount is given subject to 80G eligible grant conditions.

 

13. Section 24 - Interest on Home Occupancy Deductions It provides for a rebate of interest on home loans up to Rs. 2 lakhs for self-occupied houses and for houses to be exempted.

 

14. Section 80 EEA - This section provides a discount of Rs 1.5 lakh for first-time homeowners, which means you can increase the upper limit for technically self-acquired houses to Rs 3.5 lakh (excluding interest on the home loan which will end) on top of the discount available under Section 24. ).

 

15. Savings Bank Account Savings interest of 80 TTTA Tax on Interest Earned - Savings Account of Bank Savings/ Post Office /Cooperative Society

 

Download Automated Income Tax Preparation Excel Based Software All in One for the Government & Private Employees for the F.Y.2021-22 and A.Y.2022-23 as per Budget 2021 with New and Old Tax Regime

Feature of this Excel Utility:-

 

1) This Excel utility prepares and calculates your income tax as per the New Section 115 BAC (New and Old Tax Regime)

 

2) This Excel Utility has an option where you can choose your option as New or Old Tax Regime

 

3) This Excel Utility has a unique Salary Structure for Government and Non-Government Employee’s Salary Structure.

 

4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2021-22 (Update Version)

 

5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21

 

6) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21

6) Automated Income Tax House Rent Exemption Calculation U/s 10(13A)

 

7. The calculation has made as per the New Budget 2021 with new amended G.P.F./C.P.C. & V.P.C. Maximum Limit Five Lacks.

Read More