Tag Archives: TAX

ADDITIONAL DEDUCTION OF INTEREST ON HOME LOAN (SECTION 80EE)


A new section has been introduced in Budget 2013. It provides that while computing the total income of an assessee, being an individual there shall be deducted interest payable on loan taken by him from any financial institution for the purpose of acquisition of residential house property. This section allows for Additional deduction of Rs. 1 Lakhs for the Assessment year 2014-15 (FY 2013-14).
CONDITIONS
Deduction under this section shall be subject to the following conditions:-
• The value of house property does not exceed Rs.40 Lakhs.
• The assessee does not own any other house property on the date of sanction of loan.
• Loan must be from eligible financial institutions.
• Loan is sanctioned during the period beginning from 1st April, 2013 and ending on 31st March, 2014.
• Loan sanctioned does not exceed Rs. 25 Lakhs.
• Assessee is a first time buyer of House Property.
It is also provided that where a deduction under this section is allowed for any assessment year in respect of interest, deduction shall not be allowed in respect of such interest under any other provisions of the Income Tax Act for the same or any other Assessment year.
ELIGIBLE FINANCIAL INSTITUTIONS
The Financial institution providing loan must be either a Bank or a Public company formed with the main object of providing long term Housing Finance.
Note:- Deduction will be allowed only if loan is taken from Public company.
OVER AND ABOVE THE DEDUCTION OF Rs. 1,50,000
Deduction u/s. 80EE will be over and above the deduction of Rs. 1,50,000 allowed for self occupied properties under section 24 of the Income Tax Act.
ONE TIME DEDUCTION
This scheme is for one year only. In case where the interest payable for the previous year relevant to assessment year is less than one lakh rupees then balance can be claimed in AY 2015-16 i.e. FY 2014-15.

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Salary earners upto Rs 5 lakh need to file IT return: CBDT


Salaried with total income upto Rs. 5 lakh also to FIle IT return for A.Y. 2013-14.

CBDt has vide its press release dated 22.07.2013 clarified that exemption from filing return of income for salaried employees having total income upto Rs. 5 lakhs including income from other sources upto Rs. 10,000/- was only for assessment year 2011-12 and 2012-13 respectively. The exemption was given considering ‘paper filing of returns’ and their ‘processing through manual entry’ on system.
However, this year the facility for online filing of returns has been made user-friendly with the advantage of pre-filled return forms. These E-filed forms also get electronically processed at the central processing centre in a speedy manner. Hence, the exemption provided during the last two years is not being extended for assessment year 2013-14.

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