It's that time of the year again. Time to get ready with your investments and taxes.
Were you prudent with your investments last year? Did they help you save tax? Or did you end up paying more than you could afford?
What investment mistakes did you make last year? Are there ways to rectify them? What investment options should you go for this year?
What should you do to bring your tax liability to the minimum level?
Direct tax expert Vikas M Gandhi offered some valuable tips. Here is the transcript:
Vikas Gandhi says, Good Evening Friends
tanmay asked, can i take my housing loan principal amount for income tax exemption
Vikas Gandhi answers, at 2009-02-26 15:51:58The total principal repayment amount of your housing paid for the financial year can be claimed under 80 C deduction subject to a limit of 100000/-
MP asked, I have bought 3 houses and pay home loan interest on all of them....How can I claim tax benefit on all 3 home loans the total of which exceeds 4 lacs but I understand govt allows only for 1 house and max 1.5 lacs
Vikas Gandhi answers, Out of the three houses one will be your Self occupied house and others will be considered as let out (whether actual given on rent or not). The interest paid on the self occupied house is Rs.150000/- and on the balance let out houses the above limit does not apply i.e whole interest paid during the financial year can be claimed.
sanjay asked, what is the maximum amount one can deposit in PPF account
Vikas Gandhi answers, A maximum amount of Rs.70000/- can be deposited in PPF account during one financial year
binex asked, My wife has deposited some amount in my PPF account. Can u she claim the tax benefit under section 80C for this. We both are working.
Vikas Gandhi answers, Yes she can claim the deduction under section 80 C for deposit in your PPF account
nitindada asked, sir, namaste. What is your opinion on saving tax by purchasing two houses and taking two housing loans . This way we can save tax and build property and compulsarily save something on monthly basis -as added benefits
Vikas Gandhi answers, It is a good way to encourage savings but a word of caution. Make sure you can sustain the repayment burden through the whole tenure of loan else the tax benefit taken will turn into financial contraint.
rajeshts asked, Will NSC interest take into consideration for deducting tax payable ?
Vikas Gandhi answers, Interest accrued on NSC upto the 5th year if added in your income can also be claimed as deduction under 80 C and therefore reduce your tax. The limit under this section is 100000/-. You cannot deduct it from tax payable.
brahmaji asked, i'm physically handicaped person with 75% disability ,how much exempt i will get from IT
Vikas Gandhi answers, The deduction for disability is available under section 80 U. Upto 80 % the deduction is Rs.50000/- & above 80 % it is Rs.75000/-. Hoever note you need to take medical certificate in form 10-IA to claim the deduction.
Rajendra asked, On the second house which is being treated as let out the entire amount
paid as interest is allowed and net loss from House property can be claimed. Whether it is possible to declare the same to employer and do TDS accordingly