A taxpayer can increase his/her tax saving and lower his/her income tax liability by using the benefit of provisions relating to deductions/exemptions from taxable income under various sections of Income Tax Act.
Let’s find out how a taxpayer can do maximum tax saving
Buying a home in Joint Name will help buyer save taxes in the following way: –
For a self-occupied property, a deduction of upto Rs. 2lakh is allowed on the interest of home loan. If the house property is let-out and by chance there is a loss, then in that case, there is a limit of Rs 2lakh to set off any losses from the house property against other income heads. This unabsorbed loss will be carried forward and set off over an eight-year period.
If you have bought a property jointly and you are also paying the home loan jointly then each joint holder is allowed to claim a deduction of up to Rs 2 lakh.
The first time Home Buyers can claim extra deduction of up to Rs. 50,000 on home loan interest under the above-mentioned section. Here are a few conditions to claim deductions under the above-mentioned section
The tax payer must be an individual (Resident or Non-Resident).
• Loan must be taken for the acquisition of the property.
• Loan amount should not be more than Rs. 35 Lakh.
• The value of the house should not be more than Rs 50 Lakh.
• The home buyer should not own any other residential house at the time of loan sanction.
• You must know, that if you claimed the interest under section 80EE, then you cannot claim deductions under other sections of the deductions.
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2. Leave Travel Concession can help you save taxes:
Leave Travel Concession or LTC exemption is allowed to a taxpayer who is a salaried employee for 2 domestic journeys taken in a period of 4 calendar years.
The present period of four years commenced on January 1, 2017. In that case, if you haven’t taken that any break last year, you can do it now, using your LTC. To claim LTC you must maintain proper records.