First-time homebuyer

                                             First-time homebuyer?

Here are the tax benefits you can avail

If you are a first-time homebuyer, then do not miss out on these benefits. 

If you are a first-time homebuyer, then make the most of the several tax benefits available to you, as this is your only chance.  Here’s a handy guide that will help you gain the maximum tax benefits.

Know your benefits

Find out what section you come under when you file your income tax.

    “First-time home-buyers are entitled to claim income tax benefits under three sections of the Income Tax Act, 1961:

 . Section 80C;

 . Section 80 EEA;

 . Section 24.

       Section 80 allows tax benefits against repayment of the principal amount, whereas section 24 gives tax benefits against interest payments.  Under section 80C, you can claim a maximum deduction of

Rs 1,50,000 against the principal repaid in a financial year.  Remember that, section 24 lets you claim a deduction of up to Rs 2,00,000 against the interest paid.  Joint borrowers can claim a deduction of

 Rs 2,00,000 each.”

 

How to claim tax benefits?

To claim income tax benefits, you must provide details while filling your Income Tax Returns (ITR).

      “You can visit the website incometax.gov.in and find instructions to fill your income tax returns offline and online,” .

         “Submit your home loan interest certificate and EMI statement to your employer at the time of income tax proof submission  with your Form 12BB.  If you forget to submit these proofs to your employer,  you can still claim the tax benefit at the time of filling your income tax return.  If you are self-employed, you are not required to submit these documents.  In both situations, it is advised to keep the proof of the deduction claimed for future reference in case the IT department raises any questions.”

 

Other tax-saving tools

Top two saving tools, National Savings Certificate and Public Provident Fund.

National Savings Certificate:  The National Savings Certificate (NSC) is a fixed-income saving plan that one can open with any post office in India.  This savings plan is an initiative of the Government of India and encourages investors, mainly those who fall under low or mid-income categories, to invest while saving on income tax.

Public Provident Fund:

The National Savings Institute introduced the Public Provident Fund (PPF) in the year 1968.  The contribution made towards the PPF account is applicable for tax deduction under section 80C of the  Income Tax Act.  The scheme attracts an annual interest rate of 7.1 per cent, which is compounded annually.  One can make a minimum contribution of Rs 500 and can invest up to a maximum of Rs.1.5 lakh in a financial year.

Thanks - TIMES PROPERTY