There’s always more room to save just a little more with taxes. Which is why today we bring to you two tax-saving deductions that you must make sure to claim in your income tax return this year.
Did you buy a house between April 2014-March 2015?
Don’t forget to claim stamp-duty and registration charges while filing your income tax return this year.
Anurag paid stamp duty and registration charges of Rs. 2,40,000 January this year for a new house property he bought in Bangalore. Anurag can claim this amount as a deduction under Section 80C, subject to a maximum of Rs.1,50,000.
Did you buy your first home on a home loan between April 2013-March 2014?
Section 80EE added to the Income Tax Act recently provides first-time homeowners tax benefit of up to Rs.1,00,000. Make sure you meet the conditions listed below to claim this deduction in your income tax return. Also note that this is the last year in which you claim this tax benefit.
- You must be a first-time home owner
- Your home loan does not exceed Rs. 25 lakhs
- The property value must not exceed Rs. 40 lakhs
- Loan must have been sanctioned between 1 April 2013 to 31 March 2014
- No other house is owned by the taxpayer on the date the loan is sanctioned
Vashist bought his first home in Mangalore back in May 2013 with a home loan of Rs.22 lakhs. His parents have been living in this house ever since. He was not aware of this tax benefit and did not claim it in his income tax return while filing income tax return in 2014.
Good news, he can still claim this tax benefit directly on the income tax return form. This can be claimed in addition to the tax relief he will be getting under Section 24 for interest on home loan.
This way, he can lower his taxable income by Rs.3,00,000 from house property alone without any other deductions.
Not a new homeowner?
There’s some tax relief for you too. You can subtract municipal taxes paid and 30% standard deduction while calculating income from house property which is on rent.
For a more thorough understanding of tax benefits for homeowners, please refer to our guide here.
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