Home loans, even though the primary function of the product is to help people finance the purchase of their home, it has been used by some people for the home loan income tax benefits it offers. Home loans, if used for the purchase of first and second home, allows people to claim tax benefits. Now, once the available rebates as per section 80C and 24B has been exhausted by a housing loan subscriber, they can resort to deductions under section D.
However, people who still don’t own a home and are living in rented apartments, don’t have to pay tax on their complete monthly income. They can claim the HRA component of their salary as income tax return benefit along with transport allowance to save tax. What is HRA Tax Deduction HRA stands for House Rent Allowance and it is an essential component of an individual's monthly salary. It is basically the component of an individual's salary allotted by the employer towards the employee's accommodation as rent. This HRA component can be claimed as a tax deduction while filing ITR.
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |