Deduction

Yes you can claim. In case of individual for the assessee himself, his or her spouse, and childern. In case of HUF, the payment of LIP for Insurance of any member/members of HUF. You can check Sec. 80C for further clarification. I am not giving whole sec. 80C but only related part of this topic which is in blue color. Sec. 80C.(1) In computing the total income of an assessee, being an

I want to purchase a term plan in my name and nominate to my physically challenged dependent brother for getting the benefit of u/s 80DD. Is it possible ? Ajay Giri, ItanagarYes, you will get the deduction u/s 80DD for purchasing an insurance plan , and nominating the physically handicapped brother. The section 80DD , in fact , provides deduction only if the nomination is in favour of physically h

I made an application to set up a STPI unit in May 2008 , after getting permission from STPI de bonding formalities got completed on 30-11-2008 , business started in June 2008. Please clarify if the exemption under section 10B of I T Act will be for whole year or from the date STPI registration formalities are complete ?  Rakesh Verma , New Delhi Section 10B gives deduction to all newly establis

By Nicky PilkingtonEverybody loves a piece of land. That is the real limited resource we have on earth. And the government allows us some deductions on them too.Real estate tax deduction is a policy whereby owning a piece of property like your house gives you many tax advantages. Some of these include:1. Interest paid on mortgage: permissible unto a maximum if you have bought your first and secon

We are paying a rent to a person after deducting the TDS at the applicable rates as per the IT Act. However the owner has increased the rent on 1st Nov 2008 with retrospective effect. (w.e.f. April 2008). We have deducted TDS at the applicable rates as per the IT Act on increased rents. My question is whether we need to pay interest on balance amount of TDS w.e.f April 2008? Please clarify with r

There has been a recent increase in the standard mileage tax deduction rate. It has increased from the previous 48.5 cents per mile to 50.5 cents per mile. This new increase took effect on January 1st, 2008. The new standard...

If you are self employed, and own a business, whether you have an office or it is a home based business, you should be sure to make use of the mileage tax deduction. It is basically a way the IRS...

When looking for deductions as a homeowner, make sure that you have all the information necessary to receive the full income tax deduction. When tax time comes, your home can be a huge tax deduction. Most taxpayers are aware that...

Almost all medical expenses are tax deductible but not everyone is able to deduct them. In order to deduct medical expenses you must itemize and very few people actually itemize. There are certain dollar amounts that must be met in...

Your mileage log has just gotten that much more important for you if you are keeping track of your mileage for income tax purposes here in the United States. That's because, as of July 1, 2008, the tax deduction for...

Dudes I still haven't done my 2007 Taxes. I guess I have until October 15. Yes don't worry I filed for an extension. But shit it's almost here!! I better hurry up... I'm planning to deduct all kinds of things including my home office (I wish) above... But the not filed my taxes thing is true. I'm such a slacker.

Balance Beam Deduction (2008)[Click on the image above to see the view with binoculars.]Lapses in control are always errors. You either fall or finish your routine. When I dismount I turn on one taped foot until each judge checks the mat for compulsory lack of variety in saltosand you note a single element I did not stick. Did you pre-determine every mark made against me? ~/~

I and my wife are both salaried employees. We are purchasing a house jointly. I am taking a loan of Rs 25 Lakhs from Govt and another loan of Rs.10 Lakhs from HDFC which is on joint name of both self and wife. Total interest outgo will be approx Rs. 2.5 Lakhs in initial years. My question is- can we split the total interest equally between self and wife for the purpose of claiming deduction under

Have Your Kids Submit Your Blog To Over 350 General Web Site Directories Or Outsource This Vital Link Popularity Task You can have two big benefits from this strategy: Tax deductions on money you are already spending! Solid long-term increases in your blog traffic First, let’s benefit from the tax strategy. Listing your blog with multiple directories is the perfect type [...]

Points are everywhere. Pencils have points; pins have points. Conversations have points. Points can be earned; points can be lost. Points can be counted; points can be made. And in real estate, points can be paid. In real estate, points are your mortgages interest, your property taxes and your loan fees. They are the little things that push the cost of financing your new home, along with closing c

Are You Getting The Mortgage Interest Tax Deduction? If you're a homeowner, then you'll want to be sure you're getting the full mortgage-interest tax break. You can usually deduct the interest you pay on a mortgage for your main home...

Looking for a way to get rid of an old car? One way to do this is by selling your car. However, we all know that this can be a very daunting task and with an eight-hour job, is almost impossible to do. Fortunately, there is another convenient and fast way to get rid of [...]

Donating books to charities.There are many social service agencies that are run nationwide as well as on a state and local level. Some of the services are for profit and others are non-profit organizations. The majority of them get government support to provide services in addition to fund raising events and fees for services.Most agencies limit their fees so that they are accessible to everyone t

Hello, My question is regarding the Deduction under section 80D for Premium paid on Medical Insurance. I work for an IT company, and the company has a tie up with a health insurance company to provide coverage for me, wife and kids, the premium for which is paid by the company. But I have taken additional coverage for my parents, for which the premium is paid by me, from my salary. Can this premiu

Please advise the IT section no. under which standard deduction from the Pension income is applicable & what is the limit.Also advise, whether the standard deduction is applicable for Pension / Annuity received under LIC Superannuation Scheme. Shirish S. Gandhi ,Anand ,GujaratYour question has two limbs -one regarding pension received from employer and other pension or annuity received under L

Claiming the Child Tax Credit IRS Tax Tip 2008-45 With the Child Tax Credit, you may be able to reduce the federal income tax you owe by up to $1,000 for each qualifying child under the age of 17. A...

If you’re thinking about donating a car to a charity you may want to keep the following tips in mind. A car donation tax deduction can benefit not only you and the charity but a person in need also. Charities have the option of using donated vehicles for their own use, for providing transportation for volunteers [...]

Even if you had no tax withheld or do not owe any tax to the IRS on your tax return, you should still try to get the credit. Some people might still get some money back because the earned income...

We have received one circular that the amount as donation will be deducted from our salary to pay to recognized charitable trust (which has 80G deduction number allotted by IT Department) for the hospitalization of cancer patient. Accordingly, amount is directly deducted from our salaries and the lump sum amount is paid by the Employer to that charitable trust through cheque. Charitable trust has

For a company, TDS on its income every year far exceeds its tax liability, resulting in refund which is about Rs. 30 lakhs every year. In order to avoid the delay in getting back the heavily blocked amount as refund which usually is about 1 to 2 years, it applied for a certificate u/s 197 before the A.O for a lower tds rate. The A.O is not acting on the application (on the extant oral instruction

I'm feeling much better today, mentally if not physically. My body still aches, but all three kids are home, and my heart always feels whole then. I'm resting up for our big plans tomorrow. The NEW Zoo is holding its annual Family Fun Day tomorrow (which means free admission) so we're going in the morning. We'll grab lunch somewhere, then it's on to see Kung Fu Panda. The five of us have never see

My father has undergone a Knee replacement operation due to which he has partial mobility in his left leg.A Physiotherapist has been employed to increase his mobility. I have a certificate from the doctor who operated upon him. Will this qualify as a disability under Section 80DD? Priya ,PuneSection 80DD does not provide for deduction of expense on all disease. But the specified disease which make

I have purchased a house. At the time of purchase I had taken a loan of Rsx. I paid the full amount to the builder. The possesion of the property has not been given yet. My question is can I claim income tax benifits on the same.I mean interest on the home lean and principal payment.While deduction of interest u/s 24 is allowable only after completion of your house, no restriction is there for cla

My wife is physically challenged. I am currently in the process of purchasing a life insurance policy for her, the annual premium for the same will come to Rs. 40000. Will this amount be eligible for deduction under Section 80DD, if the policy is in her name and I am paying the premiums. Or I need to purchase a policy for her and then make her a nominee. Ravi, Mumbai Section 80DD is relief provision under I T Act for those assessee who are incurring expenditure on dependent person suffering from some disease. The details regarding disease can be read here .The provision provides normal deduction of Rs 50,000 and in case of severe sufferance , up to Rs 75,000. The condition to be satisfied for claiming the deduction are given in sub section 2 of section 80DD which is reproduced below:(

I am a handicapped ie.,deaf & dumb from birth. Also my spouse is handicapped ie.,deaf & dumb from birth. We are permanently deaf & dumb 100%. I am working as central govt employee and my spouse working in Public sector undertakings. I want to know if I have the eligibility to claim deduction u/s 80U and 80DD? . N Prakash , Chennai Income Tax Act under section 80U provides deduction to a physical disable person . Section 80DD provides deduction to a person who is spending on physical disable person. Hearing impairment is a disability defined for the purpose of section 80U .Therefore , in your case and your wife's case , both of you can get deduction u/s 80U of the I T Act.Do you require medical expenditure proof?No , under section 80U , there is no r

I have to file income tax return where the assessee has 3 medically disabled person i.e Father , Mother and Uncle (fathers brother). What is the process of getting deduction for the A.Y. 2007-08 , What is the amount and what is deduction. Pinky SitalniSince you have asked regarding three relatives who are physically disable and you want to get deduction for expense on their maintenance , I must opine first on the issue whether you are eligible for one patient or more than one patient who are your relatives and dependent on you.I find the provision has used the word “a dependant” and “ a person with disability’ plain reading of which states that the deduction is allowed in case of one dependant t only. Read the opening lines of section 80DD80DD. (1) Where an assessee, being an indiv

Does a Distance learning course of Management via satellite also qualify for the aforesaid deduction? Rajesh ,HyderabadIs the tuition fees for M.B.A (Distance Education) paid for self is allowable for deduction u/s 80C of the Income Tax Act . Prem Kumar,ChennaiDo distance education fees gets IT exemption ? Ganesh R ,BangloreIncome tax Act provides two types of deduction for education . These areTuition fee paid for children u/s 80C subject to maximum Rs 1,00,000.Interest on education loan for studies of self or spouse of children without any limit u/s 80ENow the question raised is :whether correspondence or distance education is covered under those sections of the I T Act for thr purpose of claiming deduction? Let us see what is the meaning of "studies" for the purpose of section 80C an

I am working in a school & getting 100% rebate on Tuition fee on my 2 children's fee. The amount of rebate is added as a perquisite in my gross salary which increase the amount of TDS on salary but I am not getting the rebate of the same under section 80C why ?. I have been told that since you are not paying the tuition therefore you will not get the rebate under section 80C. Please clear me is this rule is ok.When this amt is added to my salary then why can't I get the rebate on the same. Gayatri Bajpai Section 17(2)(iii) clearly provides that the value of any benefit or amenity granted or provided free of cost or at concessional rate shall be taken as perquisite. Income TaxRule 3(5) states (5) The value of benefit to the employee resulting from the provision of free or concessional e

Dear Friends,etds are now a days mandatory for many persons/deductors ,but its a new to many & for me also ,there are few difficulties in prepration of etds returns but even difficulties we face ,it is more beneficial to us and a very good step towards e governance .Problem difficulties can be sought out with view sharing.We request all to share your view with each other.Each time we have a problem /difficulty in any work we should happy at that time because we know problem will be solved sooner or later and out knowledge will improve.Now come to the point a specific question has been put to me by Mr Rajiv jain again ,I found this question very interesting to me ,I am answering this question with the guidance of CA SHIV JINDAL (FCA) (Mobile:09417055937) Ques:A deductor has deduct

I have query regarding Section 80E of Income Tax Act for the deduction of Interest paid on Higher Education Loan. One has not claimed as deduction interest paid on higher ed. loan in P.Y.2006-07 and filed return without claiming Section 80E. Now whether he can take benefit of the interest paid in 2006-07 while filling the return of A.Y.2008-09. Also please advise whether employer can consider the interest paid in P.Y. 2006-07 while deducting tax for the A.Y.2008-09 as same was not claimed and considered while deduction tax at source in A.Y.2007-08. So how an employee can get the benefit of unclaimed interest on higher ed. loan of A.Y.2007-08. Sabir F. Mulla , Ahmedabad I do not think that the interest paid on educational loan for FY 2006-07 i.e Asst Yr 2007-08 can b e claimed in Asst Y

When I was little I always wondered why my parents bothered to rummage through our closets, cabinets, shoe racks, and sock drawers for old clothing every few years. I would see my mom folding and stacking old and outdated clothes that I never wore anymore into black garbage bags and deliver them to the Salvation [...]

Some of the biggest sources of charitable donations come from corporations. While a donation made by an individual receives a tax credit, a donation made by a corporation receives an income deduction. Tax credits are different from tax deductions.Let's explain the difference by looking at a few examples. Tax DeductionLet's assume we have an individual who has a marginal tax rate of 40%. If they had a $100 tax deduction, this means they can write off $100 from their income. They would normally have paid $40 in tax on that $100 of income. By having written down their income by $100, they conversely have saved $40 of tax in this case. The value of tax deductions vary according to your marginal tax rate - so they are more valuable to higher income earners.Tax CreditIf this same perso

Budget 2008 -Fine Prints 3 Budget 2008 has brought some very nice changes in section 80 D . These are : Additional Rs 15,000 for medical insurance on parents. If the insured parent is senior citizen , additional insurance amount is Rs 20,000 (Not Rs 15,ooo)Parents need not be dependent on the assessee. If part payment is done by you and part payment by the parent, both can claim deduction to the extent of their contribution subject to maximum allowed. Read the reason with example for such an amendment by the Government as given in Memorandum to Finance Bill 2008 "Section 80D of the Income-tax Act provides for a deduction of up to fifteen thousand rupees to an assessee, being an individual or a Hindu undivided family. The deduction is allowed for making a payment to effec

In This post we will discuss issue relating to deduction u/s 80E for eduction loan for higher studies.We will try to cover all point relating to eduction loan ,but if any left or you have a diffrent opinion than us ,you can record it in comment section given below.relevant clause of section are reproduced hereunder for ready reference :80E. (1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education or for the purpose of higher education of his relat

While struggling through all life issues, you happily hear a message ring tone coming from your mobile, you open it hoping to find something interesting, but you get shocked reading a nice message giving you the great news of deducting 1 JD from your mobile credits to help the Universities in Jordan! "بناء على تعليمات وزارة الماليه تم خصم دينار رسوم جامعة من رصيدك" Well, I already went to the University of Jordan, and I already paid all the rates I should pay (my parents thankfully did), and I saw no help coming from anyone involved, though I got a really high GPA! Even the rates I paid were so high according to a governmental university (like 46 JDs per Credential Hour) though my high school grade allowed me to register through the forma

1. Who can buy these FDR? Individual or HUF  can get deduction u/s 80C  for buying Fixed Deposit in any schedule bank  . 2. What is lock in period in case of FDR? Five years without any facility for premature encashment.So the money is certainly stuck for five years . 3. How much deduction can be claimed through bank's FDR? The maximum deduction one can  avail is of Rs 1 Lakh. But that deduction is within overall limit of Rs 1 lakh for section 80C . What it means that if you have PF deduction of Rs 40000 in a year and you made a FDR of Rs 1 lakh , you can claim only Rs 1 lakh of deduction and not Rs 1.4 Lkah. 4. Can you get deduction u/s 80c for making FD in minor or in spouse name ? The deduction u/s 80C is allowed only in name of person who actually invest in

My son is doing Commercial Pilot Training at New Zealand & I had availed Education Loan from Corporation Bank in August 2007. The loan is in the joint name of my son & my wife & myself is the guarantor. I have paid interest debted towards loan regularly. My question is whether the intetrest paid towards this loan is eligible for deduction under section 80E for filing my Income Tax Return .SURESH T, Mumbai Your claim of deduction is not allowable on two grounds 1. the deduction is allowable to an assessee who has taken education loan. You have not taken the loan. Your son and wife have taken . There fore , you are not eligible for claiming deduction despite the fact that you have paid amount of interest. Read the provision  of section 80E carefully 80E. (1) In comput

Can an employer give benefit of Sec. 80DD while issuing Form 16? If so, what documents should the employer obtain from the employee? Or should the employee claim this directly while filing his/her ROI?Is actual proof of expenditure required? Or deduction of 50k is granted irrespective?This is with respect to an employee who is claiming this for his sister. Narayan Ramakrishnan , Mumbai Yes, an employer can give benefit of deduction u/s 80DD . In fact , the employer is supposed to give benefit of deduction claimed by an employee. This is clear from the Circular issued by the Central Board Of Direct Taxes every year for deduction of tax at source in case of salaries. For FY 2007-08 , CBDT issued circular no 8/2007    dated 5/12/2007 . As per this circular , the Drawing &

We have bought a house in my name.I am a house wife with no income.The loan is taken in my name.My husband pays the EMIs towards the loan.Can my husband claim this amount as deduction from his taxable income. Seema , Chennai Since you have no source of income and the house is constructed /bought in your name by the money of your husband and loan being repaid by your husband, the income from such property should be assessed in your husband's name only as you are only Benamidar of the property. There are clear provisions under I T Act for such diversion of assets without adequate consideration. Section 27 (i) and section 64(1)(iv) are the two provisions which deals with situation described by you. Section 27(1) This by virtue of section 27 of the I T Act which reads as under 27. For

By: Nicky PilkingtonWe love our vehicles like we love our pets. We treat them with care ands howler love. So we do incur some expenses on their maintenance and so why not use them as tax deductible expense?A vehicle with a gasoline engine and an electric motor can get you a deductible expense of unto $2000 while an electric vehicle can get you something like $4000.The followingfules are considered as clean and green: natural gas, LNG, LPG, Hydrogen or any other fuel that is at least 85% alcohol or less. You must remember that even though gasoline/electric hybrids use an electric motor, they are not eligible for electric vehicle tax credits.Now what if your vehicle runs on dual types of fuel? In that case the cost you incur to convert the car into a clean-fuel user is up for deduction, subject to the stated limits.There are other requirements as well. The first rule is to buy and drive it within the USA only. Should be a four wheel drive and no alterations have to be made to the vehicle

By: Nicky PilkingtonWell, what is a hybrid car? A car that qualifies to beat all the pollution and treat nature as its friend. The government is also its friend. Get a relief for that car too.The hybrid car tax deduction enables owners of a hybrid vehicle - that is cars that have a gasoline-powered engine and an electric motor -- it's a one time deal under the Families Tax relief act.Cars bought between 2004 and 2005 can have the relief up to $2000 and $500 for cars to be bought in 2006.Fortunately, a revised energy bill that was signed in August 2005, gives hybrid cars even more lucrative incentives. Due to this, a full dollar tax credit comes into play, much to the respite of the tax payers.They should now postpone the purchase of their hybrid vehicle to 2006, and avail the tax credits. They are however restricted to only the first 60000 owners and so you now need to run to your dealer to be among the first ones.Under the existing law, the value of the tax break depends on the tax b

By: Robert RogersTaxes are your single biggest expense against your income. Knowing what deductions you're entitled to can save you hundreds, if not thousands of dollars. This article will cover vehicle related deductions that often get overlooked by home-based businesses. Our focus will be for individuals with no employees, however many of the deductions will apply to small business and large corporations as well.There are two ways to calculate Vehicle deductions:1. Standard mileage for 2006 is $0.445/mile2. Actual cost method + depreciationLets start with the "standard mileage rate". You can write off each mile you drive that is related to your business at $0.445/mile. This is called the "standard mileage rate". So if you drive 10 miles to visit a client, then 10 miles to return to your home office, you can deduct 20 miles. 20x.445=$8.90. However, you cannot deduct all your miles, such as going to the grocery store. You can see how this can add up to a substantial amount. Some profe

Many people ask me whether they would be able to deduct the mortgage interest they pay. In this article we look into what is considered as home mortgage interest and what conditions are to be fulfilled to avail the mortgage interest deductions. Mortgage interest is the interest a person pays on a loan secured by his home, which can be the main home or a second home. The loan can be a mortgage to buy a house, a 2nd mortgage, a home equity loan or a line of credit. A borrower can deduct mortgage interest only if all of the following conditions are fulfilled: Borrower is legally liable for the mortgage. It means, borrower cannot deduct payments he makes for someone else if he is not legally liable to make those payments. There must be a true creditor-debtor relationship between borrower & lender. Both borrower & lender must intend that the mortgage be repaid. Borrower must file Form 1040 & itemize deductions on Schedule A of Form 1040. Mortgag

I was working with a client a while back who brought up a question that a lot of people ask me and it’s one of the most common questions I get asked. This particular client was interested in paying off his home early and wanted to go over some of the ways that he could do that. Toward the end of the conversation he asked, “But if I pay off my home, won’t I lose my tax deduction?” The home ownership tax deduction is the biggest and one of the few remaining tax deductions for the middle class American, so it’s not something that’s easy to let go of, but there’s an incredibly simple answer to that question. If I told you that if you give me a dollar, I’ll give you 33 cents back, would you go for that? If so, give me a call, I’m sure we can work something out ;-). All kidding aside, that’s what the home-ownership tax deduction amounts to. Let’s say you have $85,000 a year in taxable income; if you’re single that puts y

I have a handicapped dependent who is my cousin ( son of my mother’s sister). He is completely dependent on me and every month I spend Rs 5000. He is suffering from 95 % Blindness and mental problem.... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Rep. John Dingell (D-MI) is planning to introduce legislation that would eliminate mortgage interest deductions for homeowners whose home is larger than 3000 sq. ft.The reason behind this is that in order to discourage people from adding carbon emissions to the atmosphere, U.S. Government should penalize homeowners whose energy use is excessive due to the size of their residence.  Yeah right, that’s all our real estate market needs, if this mindless piece of legislation passes, its effect on an already deeply troubled real estate and mortgage industry would be devastating. Mr. Dingles’ timing could not be worst.Furthermore, his argument is fundamentally flawed and for any type of building, including residences the question should be energy efficiency and not the size of a residence. A 4000 sq.ft. home could use less energy than a 2500 sq.ft. home if the larger home uses energy-efficient light bulbs, high grade insulation, energy saving appliances and air conditioning and infrared

1. I have borrowed Housing Loan of Rs. 700000/- for my house where I am staying, EMI is Rs. 12000/-. Principal Amount is app. Rs. 5000/- pm, Interest portion is app. Rs. 7000/- pm 2. Now I want to... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Whether HRA exemption and housing loan rebate can be claimed together. Prashant P.Damani Yes, both can be claimed , but in some special circumstances. For claiming HRA exemption under the I T Act,... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Don’t Panic.  Your McMansion (his word, in my book a McMansion is at least 4,000 sq ft) is safe and adequately tax sheltered.  The mortgage deduction sky isn’t falling. Michigan Congressman John Dingell is proposing that houses larger than 3,000 square feet would no longer be eligible for the mortgage interest tax deduction—at least the portion over 3,000 sq ft.  That’s the buzz.  In reality, it’s a “carbon tax” bill that he’d like to see.  He’d like to see a 50 cent additional tax on gasoline too.  He believes that the controversial proposals are essential to achieving the environmental goal of reducing carbon emissions by 60-80% by the year 2050.  “In order to address the issue of climate change, we must address the issue of consumption…We do that by making consumption more expensive“, Dingell said.  Although he has some clout in Congress, it would never happen.  3,0

Did you know that if you are a landlord or a homeowner and you have to have mold removed from your home, it is tax deductible? It qualifies as a repair that has to be done to protect the investment of your home. The costs that you will incur from removing mold from your home or your business can be quite great, depending on the size of the infection. Sometimes a quarter, half, or even a whole wall or more has to be removed, not to mention the cost of the chemicals and personal protection equipment necessary to do the job safely. The Internal Revenue Service - IRS has concluded that the cost of mold removal and remediation are tax deductible as an ordinary and necessary business expense. This is a requirement that must be met before something can be deducted as a business expense: it must be both ordinary and necessary. (more…)Internal Revenue Service IRS, mold remediation, mold removal, Mortgage Articles, water damage, water damage restoration ---Related Articles at Consum

I have taken a education loan from SBI for my MBA education. The loan amount was close to 3 lacs and the interest to date is 47000. so now the current balance outstanding is Rs. 347000/- ...now the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Can one get benefit of repayment of Housing loan from his salary u/s.80C if the house property is owned by his parents (as I know Benefit u/s.24 can not be taken because he is not owner of the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

I have purchased a flat in June 2003 and want to sell it now.I have availed a loan on the flat and on the EMIs,I have been claiming IT deductions under 80C and on the interest component. Is it true... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Whether an employer can allow the interest on housing loan borrowed from friends & relatives, while calculating the employee's income tax for deducting tds on salary? anandbabu_ca@............ The interest on house property is allowed u/s 24 of the I T Act . The said provision does not provide any restriction regarding the person from whom the loan for house purchase or construction should be taken . The said provision is as under : 24. Income chargeable under the head Income from house property shall be computed after making the following deductions, namely:(a) a sum equal to thirty per cent of the annual value;(b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:Provided...........Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construct

Whether an employer can allow the interest on housing loan borrowed from friends & relatives, while calculating the employee's income tax for deducting tds on salary? anandbabu_ca@............ The... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

I am salaried guy. I have taken loans from 2 banks for 2 of my houses. One of my house is self occupied by me and I have rented the second house. My office auditor saying that the second house loan interest cannot be considered on computing the tax. What is your advice ?tkannan76@.......comIn come tax law is clear. One can purchase as many houses as he wants and for every penny of interest paid against the loan borrowed and used for purchasing or construction or renovation or reconstruction of the house ,one can get deduction of interest u/s 24 of the I T Act. Therefore in your case , if you have proof of loans for two houses separately, you can claim deduction against income of that house.Let us say, you have purchase two hosue A & B. Against A , you have taken loan from a bank and you have borrowed loan for another house B also .The interest against A is 30000 and against B is 40000 . Let us say rent received by you from house B is Rs 1,00,000 in a year.

I am salaried guy. I have taken loans from 2 banks for 2 of my houses. One of my house is self occupied by me and I have rented the second house. My office auditor saying that the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Hi, I am a working professional and have recently started an Executive MBA course. I had applied for an educational loan, which was not given to me and instead I was given a personal loan. Can I claim interest exemption from the same for tax purposes by showing that I have used the amount for paying the tuition fees of 1,80,000. brandon_r@....l.comThe deduction for interest on educational loan is allowed u/s 80E of the I T Act. It appears that the confusion you have regarding the nature of loan i.e whether interest on personal loan if utilised for paying fees of education allowed u/s 80E of the I T Act.For this , a careful plain reading of section 80E of the I T Act shows a person is allowed deduction of interest on loan if following conditions are fulfilledThe loan has to be taken from a Banking or financial institution.loan is for full-time studies for any graduate or post-graduate course in engineering, medicine,management or for post-graduate course in applied sciences or pure sci

Hi, I am a working professional and have recently started an Executive MBA course. I had applied for an educational loan, which was not given to me and instead I was given a personal loan. Can I... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

1. Understand the rules. A good place to read the government rule on car donation is IRS Publication 4303, A Donor's Guide to Car Donations (available on the IRS's website at www.irs.gov). This guide outlines some important rules regarding car donation. For example, one important rule states that car donation must be made to qualified organizations in order to be tax deductible.2. Determine the value of your used car. Although the blue book might help you determine the value of your car, you should read IRS Publication 561, Determining the Value of Donated Property (available on the IRS's website), to see what your car really worth.3. Find a charity to donate your vehicle. If you are associated with any charity or non-profit organizations, that organization might be your choice for donating your car. Otherwise, check the Yellow Book or search on the Internet to find an organization to which you feel like donating your car. After you have identified a candidate, you should review IRS

Planning to borrow the Home Loan on Joined Account by myself & my brother.Is possible both of us can claim the Income Tax benefit from concerned employer. If possible ,how we have to get the certificate from the bank or institutions. Is any provision available as per Income Tax rule? ja.vaid@mondialorg.comBoth the joint owners are eligible for claiming the deduction of interest u/s 24 as well as deduction u/s 80 C of the principal amount paid . In each case , limit of Rs 1,50,000 for interest and principal deduction upto Rs 1,00,000 applies. For example , you and wife both have taken the loan jointly and utilized for house, and suppose total of 1,00,000 of interest and Rs 1,00,000 was paid as principal to the home finance company, both of you can claim deduction u/s 24 of Rs 50,000 and deduction of principal of Rs 50,000 each u/s 80C.How to get the certificate for that? Simple, ask the financing Bank to issue certificate in joint name i.e both your name and

You want a bigger better home every time but the expenses are just mounting, hey wait, the government plans to give you some relief in the form of home improvement. Never cross the line between home improvement and repair. Both are different.

No, for claiming deduction u/s 80C for principal amounts out of borrowed home loan , there is no need of completion of construction. The house completion condition(within 3 years) is only for deduction u/s 24 of the I T Act. However,this question came to the forefront out of a question asked by a gentleman sometime back. He sent me a mail stating that the employer is not ready to allow him deduction u/s 80C of the principal amount payment on the ground that the construction of the house is not completed. In support of such argument , a letter dt 1.12.1989 was quoted where it had been provided that the deduction u/s 80C is not allowed in case construction is not completed.Later , an answer given by a tax firm on an Indian website which is not specialised on taxation law was also quoted. I have gone through the subject and the answer given on the Indian site.Therefore this answer is being discussed from following perspectivesWhether any such condition was there u/s 80C /88 of the I T Ac

1. I am a salaried employee and paying interest on housing loan amount in to RS.120000 for the year, it is a self occupied property is it entire amount eligible for deduction under income tax or is there any limit to it?2. interest paid on housing loan for the previous year 06-07 is not been claim for my income tax calculation since my income was below the taxable limit so for this financial year 2007-08 can I clime the interest amount paid for the previous year as well as this financial year ?meena_ramganesh@..............inThe answer to your first question is that entire amount of interest of Rs 1,20,000 is allowable because the upper limit is Rs 1.5 lac. As far as second question is concerned, I think you have not availed the benefit of carry forward of losses of house property. There is express provision in section 71B of the I T Act which prescribes that the losses out of house property , if not adjusted with other head of income in year shall be allowed to be carried forward to n

Can I get the tax benefit on the LIC paid for my father, as I have declared my Father dependent on me. I am not married. contact_ashish7@yahoo.co.inSection 80C(2)(i) covers deduction for amount of payment for life insurance coverage.The exact wordings of the said section is(i) to effect or to keep in force an insurance on the life of persons specified in sub-section (4);Unfortunately, sub-section 4 of section 80C of the I T Act does not mention parents as person specified on whose life insurance premium is eligible for deduction . Read the sub-section 4 of section 80C for specified"(4) The persons referred to in sub-section (2) shall be the following, namely:(a) for the purposes of clauses (i), (v), (x) and (xi) of that sub-section,(i) in the case of an individual, the individual, the wife or husband and any child of such individual, and(ii) in the case of a Hindu undivided family, any member thereof;"Therefore ,premium paid by you for your father's life insurance is not allowable u/

I have done a Certificate course ( Oracle ) from an Institution ( New Horizons India Ltd ) in Kolkata. It costs 50,000 INR. Can I get the IT benefit? If so then please tell me how can I get the benefit? Will it come under 100000 investment or directly deducted from Gross income? Please help me , its very urgent : arindamarya@gmail.comI presume that you are asking if the payment of You will not get any tax benefit from tax Rs 50,000 allowable as tuition fee under section 80C of the I T Act. In my opinion , you will not get any deduction on account of following two reasons:The deduction u/s 80C for tuition fee is allowable only for children of tax payers and not for self . Read this posting.secondly ,in your case the payment is also not to a college or school or university or any similar institution .It is to a company which is imparting a specific training or course material in a field which not even recognised as higher course anywhere in India.

At one time or another it will happen to just about everyone. You will get your W-2's from your employer, and sure enough you made some money! That is a good thing right? Yes and no. It is a good thing as long as you had the adequate amount of taxes deducted during the year, but what if you didn't? What if you owe the government money on April 15th? This can be a scary situation for most people, and can end up costing you dearly. What do you do if you owe the government more money than you have? Find a deduction! If you have an old car sitting around or one that isn't running, they will work perfectly. Maybe you even have a car you've thought about trading in, that will work as well. Here are 3 easy steps to an income tax deduction by donating a car (or other vehicle). 1. Do your homework. There are many sites on the internet that offer free information about donating a vehicle. Is your vehicle worth more than $500? Can you deduct the full amount? Can you donate a motorhome? It is

Intercontinental Hotels Dubai Festival City are looking the following positions for their pre-opening properties. 3 female greeters USD 342 25 female waitress USD 328 5 female receptionist USD 546 2 female reservation USD 546 2 B.C. Secretary USD 546 4 CDP (all section) USD 820 4 female G.R.O USD 546 3 Floor Supv (M/F) USD 546 2 P.A Supv (M/F) USD 546 24 Room and P.A. Attd (M/F) USD 274 10 Laundry Attd (M/F) USD 274 - 342 12 Commis (all section) USD 300 - 480 We offer tax free salary with employment benefits as follow: (more…) No Tags

I have purchased a house in Ahmadabad. Currently I am working in Hyderabad. I have paid Pre EMI (only interest) from Aug - 06 to 10th Dec 06. From 10th Jan 07 my EMI has been started. I have paid three installment (Jan 07 to March 07) for year 06-07. I got the possession of the House on 1st October 2006.I would like to know:1. Can I claim the Pre EMIs paid after 1st October 2006 as housing loan interest and deduct it from my income. Or shall I consider all the pre emi as pre construction cost and claim 20% each year?2. in March I have paid installment on 10th March. So what will be the treatment of the interest due for the period from 11th March to 31st March? brijesh_thakkar@hotmail.comThe basic principal for allowance of interest under house property are :Whatever interest paid/payable upto date of completion is allowed four installment starting the FY in which the house was completed.Whatever interest paid/payable from date of completion to 31st March is claimable in in FullA c

I have short term capital gains from share trading of Rs 2,20,000. I have no other income in that financial year. I have lici of Rs 35,000 and medical insurance premium of Rs10,000 and children education fees of Rs 10,000. Can I claim rebate of Rs. 55,000 from short term capital gains tax, pay tax on remaining Rs. 1,65,000. Please let me know. bindusinghania@yahoo.co.inThe tax on short term capital gains on shares was reduced from normal rate to 10 % from assessment year 2005-06 .But the cost of this benefit was that neither deduction u/s 80C to 80U nor Rebate u/s 88 was allowed . Sub section 2 and 3 of the Section 111 contains such restriction .The excerpts are given as under: "111A. (1) ...... (2) Where the gross total income of an assessee includes any short term capital gains referred to in sub-section (1), the deduction under Chapter VI-A shall be allowed from the gross total income as reduced by such capital gains. (3) Where the total income of an assessee includes any short

I have bought a house in name of self and my wife. My wife is co-applicant in Home loan application well.Can both of us claim for the benefits of Principal payment and Interest payment components according to our share of repayment in loan ?The Bank issues the repayment certificate in the name of both of us, so how do we divide the share in case repayments are not done in equal proportions?To be more detailed, suppose I pay 150,000 and she pays 100,000 then how do we show our individual contributions because the bank provides only a single certificate : pankaj.khandelwal@gmail.comThere is express provision under section 26 the I T Act for the computation of the house property income in case it is jointly owned as in your case. The excerpts of the said provision is as under:26. Where property consisting of buildings or buildings and lands appurtenant thereto is owned by two or more persons and their respective shares are definite and ascertainable, such persons shall not in respect of

I am employed with VSNL. My mother is a psychiatric patient since 15 years (mental disability) and her expenses for her treatment are taken care by me.(She is dependent on me).Am I eligible for any deductions under the disability clause of income tax.If yes, what is the procedure or proof I need to submit during my returns for such exemptions.isha.razdan@.......inI T Act provide deduction for expenditure on a dependent disable person for maintenance of his health (section 80DD).For claiming deduction under section 80DD, you need not have any proof of expenditure on the maintenance of the disable relative.You are allowed Rs 50000 and for severe disability Rs 75,000 . For this , you will have to attach the certificate in Form 10-IA to be issued by any of the following authority with your return of income:(i) a Neurologist having a degree of Doctor of Medicine (MD) in Neurology (in case of children, a Paediatric Neurologist having an equivalent degree); or(ii) a Civil Surgeon or Chief

The principle repaid and the interest paid for the purpose of a housing loan is given some benefits in the IT. I want to know whether these benefits are available only for the housing loan taken from banks/ financial institutions or for loan taken from any source like individuals/ banks as personal loan etc. rajeshgudipudi@yahoo.comGood question. The interest allowable u/s 24 of the I T Act is allowable even if the loan is borrowed from an Individual whereas deduction u/s 80C is allowable only in case of specified source of loan .Section 24 puts only condition that a certificate has to be issued by the Person from whom loan is borrowed .The excerpt from said section is :"Provided also that no deduction shall be made under the second proviso unless the assessee furnishes a certificate, from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property, or,

I am taking one mediclaim policy in name of my Wife( who is not filing) and her parents. Can I avail the tax benefit for this mediclaim?pradeepk@sgtus.comThe mediclaim deduction is allowable u/s 80D. Sub section 2 of Section 80D states the person on whom mediclaim policy allowable for deduction under I T Act.The excerpt of the relevant provision is as under:"(2) The sum referred to in sub-section (1) shall be the following, namely : (a) where the assessee is an individual, any sum paid to effect or to keep in force an insurance on the health of the assessee or on the health of the wife or husband, dependent parents or dependent children of the assessee;"In my opinion, law makers used the words assessee and then wife or husband and dependent parents, mean that only assessee's parents who may be either husband or wife , is allowable for mediclaim. As such, you may not get deduction for the amount spent on "parents of wife" Tags: Deduction, Income Tax

I m a central Govt. Servant. I have recently bought a flat. I had taken Rs. 1,50,000 as interest-free loan from my brother to pay the stamp duty etc. while purchasing the flat. I want to know:1. whether the money taken from the brother impose any tax liabillity on me?2. If not, can I be given any income tax rebate on the said amount?Kindly answer my queries. praaanjal@yahoo.comNo, there is no income tax liaibility.Unlike old Section 88 under which rebates were allowed , substituted section 80C does not require that the investment for claiming deduction u/s 80C of the I T Act has to be only from income chargeable to tax.Therefore, the only condition for claiming the deduction u/s 80C is actual investment.Source of investment is immaterial. You can claim deduction of Stamp Duty payment even if same is paid out of loan from brother.

For AY 2007-08, what mutual funds are eligible for Sec 80 C?Your Email : colmitra@..........com The mutual funds eligible for 80C deduction are almost all the mutual funds which are recognized by SEBI. Section 80C under sun section [xiii] states as under"(xiii) as subscription to any units of any Mutual Fund notified under clause (23D) of section 10 or from the Administrator or the specified company under any plan formulated in accordance with such scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf;"You can get the list of notified mutual funds u/s 10[23D ] here.

I have taken an Education loan for Rs 8 Lakhs for my daughter's higher education in U.K. Any deduction allowed in my loan repayment ? and how much ?mailto:dbaruah@gmail.comSorry, if you have taken the loan of for your daughter , neither you nor your daughter can get any deduction u/s 80E because the deduction u/s 80E is allowed to only that person who takes loan for his studies and not for others. Section 80E is given as under"80E. (1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education."Budget 2007 update [thanks Sanjeev!]It has been proposed that the educational loan taken for the relatives which is defined as Wife and Children shall also be

I am a salaried employee...I m paid by my employer:-TOTAL SALARY = BASIC PAY + DA.NO HRA IS BEING PAID AT PRESENT...FURTHER, I AM PAYING AN AMOUNT OF RS. 2000/- PER MONTH TOWARDS MY HOUSE RENT IN THE RURAL AREA NEAR TO MY JOB LOCATION...CAN I GET EXEMPTION IN THIS REGARD, AS ACTUALLY I AM PAYING THE RENT, HOWEVER NOT BEING PAID HRA... parveensatija@rediffmail.comSince you are not getting the HRA and paying rent , you will get deduction u/s 80GG of the I T Act. Deduction u/s Section 80GG shall be the least of followingany expenditure incurred by him - 10% of his total income orRs 2500 per month oror 25% of the Total Income for the year .Tags: Deductions, Income Tax

My question is about allow ability of fees paid to a coaching institute u/s 80 C .This institute gives education for 3 to 4 hours for PMT exam preparation.Name of the Coaching institute SHRI CHAITANYA EDUCATIONAL COMMITTEE duly registered at Indore. singhal_dev2006@rediffmail.comI do not think that deduction 80C is allowable for tuition fee of a coaching institute. Read carefully the provision contained in [xvii] of Section 80C , given below“as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,(a) to any university, college, school or other educational institution situated within India;(b) for the purpose of full-time education of any of the persons specified in sub-section (4);“So, what the sub section states , that payment should be to any educational institute and for the purpose of FULL-TIME education. A coaching institute is not imparting a person an Education , but pre

I have purchased my first flat in 2006-2007.Now i am paying EMI. But due to the distance of that area approx 30 km from my place of work I have not occupied that flat and I am staying in company provided accommodation. Neither I have given for rent.Can I get tax benefit on EMI paid to bank.May i request u to clarify at the earliest: dash_bhramar@rediffmail.comYes , you can get the deduction of interest and principal payment because the I T Act has special provision for such case when a person can not occupy for the reason of employment , even in that case ,the annual value of the house is to be taken as NIL value and interest is to be allowed as deduction.Section 23[2] of the I T Act is very specific.Read this answer and give attention to section 23[2] quoted therein which specifically provide such relief to a person who on account of his employment can not occupy the house.Tags: House Property, India, Income Tax

Donating your used car to charity is a win-win situation; the charity gets your gift and you get tax deduction. Below are some simple steps to make a car donation.1. Understand the rules. A good place to read the government rule on car donation is IRS Publication 4303, A Donor's Guide to Car Donations (available on the IRS's website at www.irs.gov). This guide outlines some important rules regarding car donation. For example, one important rule states that car donation must be made to qualified organizations in order to be tax deductible.2. Determine the value of your used car. Although the blue book might help you determine the value of your car, you should read IRS Publication 561, Determining the Value of Donated Property (available on the IRS's website), to see what your car really worth.3. Find a charity to donate your vehicle. If you are associated with any charity or non-profit organizations, that organization might be your choice for donating your car. Otherwise, check the Y

I have a taken a home loan and a salaried employee.I understand max limit on deduction of home loan interest from gross salary is Rs. 150000. Is that true? How can we increase it?a_gilotra@yahoo.com How about getting a total deduction of Rs 2,50,000 from your gross total income ? Actually now it is possible. Yes maximum interest for self occupied house is Rs 1,50,000 , but now even principal amount can be deducted under section 80 C upto 1 lakh . This was previously restricted to Rs 20000 .The mathematics is as follows Rs 1,50,000 of Interest u/s 24 Rs 1,00,000 of Principal payments u/s 80 CTherefore, if you take home loan in such fashion that total out go on interest and principal is 2,50,000 per year, you will get the benefit at MAXIMUM. No more is possible for self occupied house. Remember for house on rent , there is no limit for interest deduction.

I have a question about Home Loan Interest & Principal repayment.I took a home loan in Mid-2005 on an apartment which is under construction. I will get the possession in May 2007. In the meanwhile, I am living in a rented apartment. Is it possible to claim Principal repayment on an under construction apartment? If I can claim principal in this financial year, Can I claim both housing loan Principal & HRA on the rented accommodation? How much is the limit on claiming principal amount? Can I claim the principal that I paid in year 2005-2006? If I can't claim the principal amount in this financial year, how can i claim for the amount that I have paid since Mid'05. Is it similar to claiming for interest? priya.a@gmail.com Yes you can claim Principal amount without completion of construction.Therefore , you can claom princiapl paid for FY 2005-06.You can also claim exemption HRA on rented accommodation because the exemption is for rental payment.No principal deduction is

I an working for an MNC in Bangalore. My permanent home is in a town in Madhya Pradesh. That house is not properly built, i need to take a loan for house reconstruction. But that property is in my father's name, so if i take a home loan should i get tax benefit?or property should be in my name? or can it be combined also (i.e. my brother/father's name along with me) jeetiitr1@rediffmail.comThe deduction of interest is given u/s 24 which starts with the line -"Income chargeable under the head "Income from house property" shall be computed after making the following deductions,". Since in your case, you do not own the property for which you want to take loan either singly or jointly, no income of house property is chargeable under house property head in your case . So, you , even if you get the loan, will not get the benefit of deduction of interest under I T Act However, if you get the roof of the property or even part of property in gift in your name from your father and build a

Can the interest portion of the housing loan be eligible for 80C deduction before the possession of the house under construction. We do not intend to claim the deduction u/s 24 for Interest on pre-construction period after the possession?monalisa_ch@indiatimes.comThe interest is not an allowable expense under Section 80C . You get deduction of principal amount u/s 80C . Further,you can not postpone interest u/s 24 of the I T Act.You can forsake it, but you will not get the deduction pertaining to one year in some other year. I do not understand the rationale of your forgoing the interest. Anyway, choice is yours!

I am a salaried individual living in my own flat in Bangalore, for which I have taken a home loan and paying emi. I also built a house in my native place which has been given on rent for which I have taken another home loan and paying emi. Can I claim IT deduction for the interest/ principal amount repaid for both the loans?U.RAJNIKANTHYes , you can. Under the I T Act, you have got an option to declare one house as self occupied house. For self occupied house , in case of individuals , interest is allowed as deduction upto Rs 1,50,000. Therefore, the house at Banglore in which you actual live, can be declared as Self occupied home and if any interest was apid for its construction or purchase , same is claimmable upto Rs 100000. Same is true for Principal amount.The Provison given u/s 23 of the I T Act is given below"(2) Where the property consists of a house or part of a house which— (a) is in the occupation of the owner for the purposes of his own residence; or (b

I am treating my 8 month old child for cancer. The treatment expences are running beyond 1 lakh rupees in this 05-06 financial year itself. What is the maximum tax exemption that i can get for this year?I have also spent around Rs.25000/- for the same child for treating jaundice, when she was born in this same financial year (may-2006).Can i club these 2 expenses and claim exemption? mailstani@.comUnder the I T Act. there is only one deduction for person spending on cancer patient who is his/her dependent relative. The maximum deduction allowed is Rs 40,000 in Case of patient, who is not a Senior Citizen. The relevant provision is given a under"80DDB. Where an assessee who is resident in India has, during the previous year, actually paid any amount for the medical treatment of such disease or ailment as may be specified in the rules31 made in this behalf by the Board (a) for himself or a dependant, in case the assessee is an individual; or (b) for any member of a Hindu

I have a taken a home loan and a salaried employee.I understand max limit on deduction of home loan interest from gross salary is Rs. 150000. Is that true? How can we increase it?a_gilotra@yahoo.com How about getting a total deduction of Rs 2,50,000 from your gross total income ? Actually now it is possible. Yes maximum interest for self occupied house is Rs 1,50,000 , but now even principal amount can be deducted under section 80 C upto 1 lakh . This was previously restricted to Rs 20000 .The mathematics is as follows Rs 1,50,000 of Interest u/s 24 Rs 1,00,000 of Principal payments u/s 80 CTherefore, if you take home loan in such fashion that total out go on interest and principal is 2,50,000 per year, you will get the benefit at MAXIMUM. No more is possible for self occupied house. Remember for house on rent , there is no limit for interest deduction.

I an working for an MNC in Bangalore. My permanent home is in a town in Madhya Pradesh. That house is not properly built, i need to take a loan for house reconstruction. But that property is in my father's name, so if i take a home loan should i get tax benefit?or property should be in my name? or can it be combined also (i.e. my brother/father's name along with me) jeetiitr1@rediffmail.comThe deduction of interest is given u/s 24 which starts with the line -"Income chargeable under the head "Income from house property" shall be computed after making the following deductions,". Since in your case, you do not own the property for which you want to take loan either singly or jointly, no income of house property is chargeable under house property head in your case . So, you , even if you get the loan, will not get the benefit of deduction of interest under I T Act However, if you get the roof of the property or even part of property in gift in your name from your father and build a

I am a salaried individual living in my own flat in Bangalore, for which I have taken a home loan and paying emi. I also built a house in my native place which has been given on rent for which I have taken another home loan and paying emi. Can I claim IT deduction for the interest/ principal amount repaid for both the loans?U.RAJNIKANTHYes , you can. Under the I T Act, you have got an option to declare one house as self occupied house. For self occupied house , in case of individuals , interest is allowed as deduction upto Rs 1,50,000. Therefore, the house at Banglore in which you actual live, can be declared as Self occupied home and if any interest was apid for its construction or purchase , same is claimmable upto Rs 100000. Same is true for Principal amount.The Provison given u/s 23 of the I T Act is given below"(2) Where the property consists of a house or part of a house which— (a) is in the occupation of the owner for the purposes of his own residence; or (b

I am treating my 8 month old child for cancer. The treatment expences are running beyond 1 lakh rupees in this 05-06 financial year itself. What is the maximum tax exemption that i can get for this year?I have also spent around Rs.25000/- for the same child for treating jaundice, when she was born in this same financial year (may-2006).Can i club these 2 expenses and claim exemption? mailstani@.comUnder the I T Act. there is only one deduction for person spending on cancer patient who is his/her dependent relative. The maximum deduction allowed is Rs 40,000 in Case of patient, who is not a Senior Citizen. The relevant provision is given a under"80DDB. Where an assessee who is resident in India has, during the previous year, actually paid any amount for the medical treatment of such disease or ailment as may be specified in the rules31 made in this behalf by the Board (a) for himself or a dependant, in case the assessee is an individual; or (b) for any member of a Hindu

Can the interest portion of the housing loan be eligible for 80C deduction before the possession of the house under construction. We do not intend to claim the deduction u/s 24 for Interest on pre-construction period after the possession?monalisa_ch@indiatimes.comThe interest is not an allowable expense under Section 80C . You get deduction of principal amount u/s 80C . Further,you can not postpone interest u/s 24 of the I T Act.You can forsake it, but you will not get the deduction pertaining to one year in some other year. I do not understand the rationale of your forgoing the interest. Anyway, choice is yours!

accounts@lbsnaa.ernet.in asked " What is the limit of Tuition Fee (in Rupees) that is exempted from Income Tax Purpose for the financial year 2006-07?" The limit is Rs 1,00,000 -the limit u/s 80 C . but i am afraid there is no school in India , perhaps which charges such high amount as TUITION FEE. The relevant provision under the I T Act is given below "(xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,(a) to any university, college, school or other educational institution situated within India;(b) for the purpose of full-time education of any of the persons specified in sub-section (4);"

nagesh.vanga@gmail.com Asked: Does Savings done on the name of dependent parents (or children) of the Assessee eligible for Income Tax deductions U/S 80 for the Assessee?Good Question.Unfortunately , no deduction u/s 80C is not allowed for savings in name of Parents. Only in following cases, savings on other family members .The list of savings on your family members are only two as per details below:LIC insurance policy- Self, wife,son and daughter.Annuity Plan -other than Insurance- Self,Wife/Husband,Son/daughter.The provision u/s 80(4) defines the Persons for which investments gives you deductions" (4) The persons referred to in sub-section (2) shall be the following, namely:(a) for the purposes of clauses (i), (v), (x) and (xi) of that sub-section,(i) in the case of an individual, the individual, the wife or husband and any child of such individual, and(ii) in the case of a Hindu undivided family, any member thereof;(b) for the purposes of clause (ii) of that sub-section, in the