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Showing posts with label 80EEA and 80C. Show all posts
Showing posts with label 80EEA and 80C. Show all posts

Sunday 6 February 2022

 

 Download Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E. There are 2

 components to a home loan repayment such as principal repayment and interest repayment. Since there

 are 2 different components to debt repayment, the tax benefits of a home loan are regulated by different

 sections of the Income Tax Act and are claimed as tax deductions under different sections when filing

 an income tax return.

 

Download automated income tax arrears relief calculator U/s 89(1)

Home loan tax benefits

Approved for paragraph cuts

Section 24            Rs 2,00,000      interest payable

Section 80C         Rs.1,50,000       principal payment

Section 80EEA    Rs.1,50,000       pays interest

Section 80EE       Rs.50,000          interest payment 

The following are the benefits of a home loan which can be claimed as a deduction: -

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

 

Section 80C: Tax Benefit on Home Loan (Original Amount)

The amount paid by an individual / HUF as repayment of the principal amount of the home loan is approved as tax deduction under Section 80C of the Income Tax Act. The maximum tax deduction allowed under section 80C is money. 150,000

You may also, like- Automated Income Tax Preparation Excel Based Software All in One for the Non-Govt(Private) Employees for the F.Y.2021-22

Download Automated Income Tax Arrears Relief Calculator U/s 89(1)

This tax deduction is the total deduction allowed under section 80C and includes money invested in PPF accounts, tax-saving fixed deposits, equity-oriented mutual funds, national savings certificates, senior citizen savings schemes, etc.

 

This tax deduction under section 80C is available on a paid basis regardless of the year for which the payment has been made.

 

Furthermore, if you are planning to purchase 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.

Homes cannot be sold within 5 years

 

Section 80C (5) also states that if the assignee transfers the home property on which he has claimed tax deduction under section 80C before the end of the financial year where he got possession, then no deduction on home loan under section 80C. And tax benefits will not be allowed.

 

In the case of previous years, the total amount of tax deduction already claimed will be treated as the assessee's income for the year in which the property was sold and will be liable to pay tax on the assessed income.

 

Tax Benefit on Home Loan (Amount of Interest)

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

Pursuant to Section 24, income from the home property will be deducted by the amount of interest paid on the loan taken for the purpose of purchase/construction/repair/renewal/reconstruction of the property.

You may also, like- Automated Income Tax Preparation Excel Based Software All in One for the Govt and Non-Govt(Private)Employees for the F.Y.2021-22

 

Salary Structure

The maximum tax deduction allowed under section 24 of a self-acquired property is Rs. 2 lakh (increased from Rs 1.5 lakh to Rs 2 lakh in the 2014 budget).

 

If the property for which the home loan has been taken is not self-acquired, no maximum limit has been set in this case and the taxpayer can avail full tax deduction under section 24.

 

PLEASE NOTE: If a property is not self-occupied by the owner due to his job, business or occupation in another place, then he has to live in another place that is not his, then the amount of tax deducted under section 24 will be Rs. Only 2 lakh rupees.

 

In addition, if the acquisition/construction of the property is not completed within 5 years from the end of the financial year in which the loan was taken, the interest benefit, in this case, will be reduced from Rs 2 lakh to Rs 30,000. (The limit has been increased from 3 years to 5 years from FY 2016-17).

Budget 2021 update

In the case of self-acquired property, the interest paid is deducted from the rent paid to reach income from the house property. In some cases, the interest paid may be higher than the rent earned, resulting in a loss of home property. This loss is allowed to set off with income from any other head

 

The Finance Act 2021, promulgated on February 1, 2017, places a limit on the maximum amount of losses that can be deducted from other major sources of income under the main house property. From the financial year 2017-18,

Pre-construction interest income tax treatment

 

In many cases, the payment for the purchase of property is made before the construction work is completed. Some home buyers buy property on credit before construction is completed and start giving EMIs to banks.

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

Data Input Sheet


Income Tax Form 10 E

Income Tax Form 10E


Wednesday 6 October 2021

 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.

Download Automated Income Tax Preparation Excel Based Software for the Non-Govt (Private) Employees for the F.Y.2021-22 as per Budget 2021[This Excel Utility can prepare at a time Tax Computed Sheet + Individual Salary Structure as per the Govt & Private Employees Salary Pattern + Automated House Rent Exemption Calculation U/s 10(13A) + Automated Form 12 BA + Automated Income Tax Form 16 Part A&B and Part B for the F.Y.2021-22]

Salary Structure for Private Employees

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.

Download Automated Income Tax Preparation Excel Based Software for the Bihar State  Employees for the F.Y.2021-22 asper Budget 2021[This Excel Utility can prepare at a time Tax Computed Sheet + Individual Salary Structure as per the Bihar State Govt Employees Salary Pattern + Automated House Rent Exemption Calculation U/s 10(13A) + Automated Income Tax Form 16 Part A&B and Part B for the F.Y.2021-22]

 

Salary Structure for the Bihar State Employees

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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Salary Structure

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

Download Automated Income Tax Preparation Excel Based Software for the Government and Non-Government (Private) Employees for the F.Y.2021-22as per Budget 2021

Tax benefits on home loans U/s 24 (b)


Income Tax Form 16 Part A&B
Tax benefits on Home Loan

Feature of this Excel Utility -

$This Excel Utility can prepare at a time Tax Computed Sheet

 

$ Individual Salary Structure as per the Govt & Private Employees Salary Pattern

 

$ Automated House Rent Exemption Calculation U/s 10(13A)

 

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

 

$ Automated Income Tax Form 16 Part A&B and Part B for the F.Y.2021-22]







Wednesday 21 April 2021

 

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 

Income Tax Form 16

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 

Salary Statement

 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 

Income Tax form 16 Part B

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 

Income Tax Form 16 Part A&B

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 

Income Tax form 16 Part A and Part B

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)

Income Tax Form 10 E