Income Tax Rebate For The Non-HRA Workers On Rent: Section
Deduction On Rent Amount
Arun Jaitley as well proposed to enhance the limitation of deduction on rent amount paid from 24,000 rupees per year to 60,000 rupees per year giving break to those people who do not own their personal home and used to live in the rented house.
our FM Arun Jaithley has lifted the utmost deduction obtainable under Sec 80GG to 60,000 per year from the present 24,000 rupees per year. This will impact those people who aren’t salaried workers or don’t get House Rent Allowance as a part of the salary. According to the current laws of tax, such people are able to claim tax deduction on rental fee paid from the gross income tax up to 24,000 rupees per year. This limitation is at present planned to be enhanced to 60,000 rupees per year. As a consequence, consultants or the self employed individuals like teachers working in coaching classes and adhoc workers will be included in this proposed modification.
At present, salaried people (getting HRA with salary) claiming for deduction on rental fee paid from their salaries under sec 10 aren’t affected by the new proposed modification in the tax law. The tax deduction under sec 80 GG is accessible to any individual who doesn’t receive HRA with his or her salary. Tax deduction is accessible with reference to the rental charge paid by any individual for his or her own individual housing in a specific year. A statement in the Form 10 BA must be proposed by the particular individual to benefit from this tax deduction. At present, the sum of tax deduction permitted is the smallest amount of the subsequent: Rental charge paid in excess of 10 percent of the salary (basic salary + Dearness Allowance) or 25 percent of the total income (prior to subtracting any tax deductions) or 2000 rupees per month.
Any salaried worker who doesn’t receive house rent allowance as a fraction of his or her salary or any individual, who don’t have any kind of salaried income, can benefit from the deduction under sect 80 GG owing to rent payment. The present provision imparts an utmost deduction of 2000 rupees per month that is regularly not sufficient to cover even 50 percent of the definite rental charge paid.
Income Tax Exemption for Home Loan Buyers
|Type||First Home Loan (price of house less than 50 Lakhs)||First Home Loan (price of house more than 50 Lakhs)||Second Home Loan|
|Individual||2 Lakhs||1.5 Lakhs||1.5 Lakhs|
|Senior Citizens||2 Lakhs||1.5 Lakhs||1.5 Lakhs|
|Very Senior Citizens||2 Lakhs||1.5 Lakhs||1.5 Lakhs|
Though making no modification in the personal slabs of Income Tax in the Central Budget of 2016-17, Arun Jaitley, the Finance Minister of India on Monday declared the deduction for extra interests of 50,000 rupees per year for the loans up to 35 lakh rupees sanctioned in the year 2016-17 for the people who are buying home for the first time, where the cost of house does not go beyond 50 lakh rupees.
For those people earning lesser than the 5 lakh rupees per year, the Finance Minister declared to lift the amount of taxation rebate from 2000 rupees to 5000 rupees giving an extra relief of 3000 rupees in their liability of tax. In the Central Budget of the year 2016