A Comment on keeping knowledge of deductions allowable under I.Tax Act and invest with prudence

My Comment on an article "5 things one must consider before making a fresh Section-80C investment for FY 2016-17" published in the economictimes.com Dated 07/01/2017.


The author of this article pointed to the various options available with a detailed analysis to obtain the most possible benefit from investments and also to get the exemption to the utmost limits for the current Financial Year ending on 31st March 2017.

The most important among these points is that you should know up to how much deductions you are entitled to:

Under Section 80C, the maximum deduction available is Rs.1.50 lakh.

Section 80CCD allows you a further deduction of Rs.0.50 lakh on investments made in National Pension Scheme.

Section 80D provides you a deduction of up to Rs.25,000 on premiums paid under Health Insurance Plans. If it is a senior citizen, then deduction allowed is up to Rs.30,000.

Further, there is an additional deduction available under Section 24 for interest payments on home loans. The maximum interest deduction allowable under this section is Rs.2.00 lakh.

So, you are able to see that one can get maximum benefit by availing all these options if he can invest prudently.

A Comment on unknown facts of tax reliefs for home loans under Section 24 and 80C

My Comment on an article "Six things about home loan tax incentives you didn't know" published in the economictimes.com Dated 24/05/2016 at 3 pm.


"Very useful information provided in this article by the author. 

The differences between deductions allowed under Section 24 and Section 80C have been clearly mentioned. 

Most of us do not know that tax relief is allowed on interest payments and consultancy or other fees paid for borrowings made even for the repairs and reconstruction of our homes. 

The main points underlined are:

• You can claim tax benefit for interest accrued for the full year even though you skipped some EMIs.
• Processing fees and other charges incurred in getting the loan are also tax deductible.
• Loans obtained from friends and relatives are also tax deductible if taken for home loan purpose.
• Loan principal repayments during the pre-construction period can not be claimed for tax relief. But interest part of those EMIs can be claimed for tax relief during subsequent 5 years after possession of the house.
• If it is a joint loan, one should be a co-borrower along with being a co-owner of the house for enjoying the tax reliefs.