| “Saving Tax” on your income is always a spot | | | | Also reconstruction or renewal or repairs is eligible for |
| of interest for each one of us and why not when | | | | deductions under the said section. |
| there is a legal way? | | | | The Section 80(c) of the Income Tax Act, 1961 allows |
| Saving Tax is easier under Indian Income Tax Act if | | | | you a deduction of up to Rs. 1,00,000 on the principal |
| one opts for the home loan. There are two sections of | | | | repayment amount. |
| Indian Income Tax which allow you to avail this benefit. | | | | Example Suppose your total taxable income is Rs. |
| 1) Indian Income Tax Act 1961, Section 24 (B) | | | | 6,00,000. Hence now your total taxable income |
| 2) Indian Income Tax Act 1961, Section 80 (C..) | | | | becomes only (6 - 2.5 - 1 Lacs) and that saves a lot of |
| If proper investments are made then you can get a | | | | money! |
| total deduction of Rs. 2.5 lacs per year. Under section | | | | With property rates increasing at 300% an year, |
| 24, one can save up to Rs. 1.5 Lacs and under section | | | | literally tripling your asset worth in an year, makes |
| 80 save up to Rs. 1 Lacs. | | | | investment in property a nice avenue for "guaranteed |
| The Section 24(b) of the Income Tax Act, 1961 is | | | | profits" on investments. To make it even better you |
| applicable on Home loan for purchase of house or | | | | can save on taxes if you purchase a property for self |
| construction of the house property. You can avail a | | | | -- through the loan mechanism. |
| deduction of up to Rs. 1,50,000 of you total tax liability, | | | | |