Claim Tax Deductions on Home Loan

No matter how much we hate taxation, we have to live with it.

No matter how much we hate taxation, we have to live with it. We all hate the substantial amount of money that is deducted from our salary every month as tax. What we even hate more is the money deducted as home loan EMI. Thankfully, home loan allows you many substantial tax deduction. As per the financial year 2017-18, the upper limit on tax deductions on home loan is set at Rs 2,00,000.

If you are a working professional, you don’t directly need to submit any sort of documents to income tax departments. You can submit them to the employer who will adjust the TDS (Tax Deducted at Source) based on the documents you have provided. This gives you entire year’s time to know your tax liabilities.

In case you are hiring a charted accountant to file tax returns, you need to provide them with all the necessary documents.

List of Documents You Need to Claim Tax Deductions on Home Loan

  • buy modafinil chemist warehouse Borrower Details: It is necessary because only the borrower or the co-borrower are eligible to claim tax deductions.
  • follow url Interest Certificate: Specifying the Principal and Interest details
  • get link Ownership Details: Only owner or the co-owner of the property can claim tax deductions. You cannot claim deduction on entire property as the amount deducted will be proportional to your share in property
  • Construction Completion Certificate: This is needed as you are eligible for tax deductions only after the construction is completed.

You can also claim pre-construction interests, payable in five equal instalments starting from the year when the construction is completed.

Calculate your income from the house

The tax deduction for a self-occupied home has an upper limit of Rs 2,00,000. There is no upper limit on the deductions you are eligible on the interest, if you have rented your apartment. Here are the steps for calculating your tax deductions:

  • Gross Value of the property
  • (Less) Municipal Taxes- if paid during the year
  • (Less) Standard Deduction (30 percent of Net Annual Value= Gross value minus Municipal Taxes)
  • (Less) Deduction for Interest on Home Loan
  • You will arrive at the “Income from House Property” figure

Tax Deductions on Repayment of the Principal Amount

It is eligible for tax deductions under Section 80C, the upper limit on tax deductions of principal amount repayment is Rs 1,50,000. This limit the total of money also invested in Public Provident Fund (PPF) account, Senior Citizen’s Saving Scheme, equity-oriented mutual funds, tax-saving fixed deposits, and National Savings Certificate.

However, you can claim a tax deduction on this only after the construction is complete.

Give Your House a Makeover

Simple ideas like re-adjusting your room furniture, replacing bed sheets with white linen or covering furniture with colourful fabric work wonder to give your house the needed makeover.

Caught between low-budget and an urge to give your house a makeover? A makeover doesn’t necessarily mean buying new furniture or doing a roomful of up-gradation. Sometimes one small change is all it takes to add panache to the otherwise dull room. Here are some of our quick, simple yet stylish tips for a quick makeover for your house:

Upgrade Your Light Switch Cover

While we are busy adding artwork to the home walls, we ignore the drab, plastic switchboards, which are often placed in the centre. Its time upgrade the boring covers with snazzy covers to match your decor. Even the most expensive covers are affordable and will cost you way less than any form of wall décor. You can even decorate it yourself using craft paint of decorative covers. Don’t get too overboard with decoration though!

Change Kitchen and Bathroom Furniture’s Hardware

Give the conventional pulls and knobs a break and upgrade them with funky and stylish knobs. The knobs will cost you just a fraction of the cost of installing new furniture but will still make your kitchen and bathroom look new and different. Be sure to measure the length of the older drawer pulls before buying new ones so that you won’t have to drill new holes.

Install a Wind Chime

Install a wind chime in an area where it can hit a breeze. Not only they look beautiful but also the sound they produce makes the atmosphere of the room calm and serene. You can custom-made wind chimes to match or contrast your furniture. And if you are someone who believes in Feng Shui, wind chimes are believed to bring positivity and luck too!

Add Some Green to the Indoors

We all love green outdoors but adding green to indoors can give your living room an amazing makeover. Place a side table with a small plant next to your sofa set or close to the walls in the living room. You can also place small pots of plants in the windows or in the stairs to enhance the natural feeling inside the home

Follow a Declutter Routine

Nothing makes your house better than a daily declutter routine. Even if it is 10 minutes out of your daily schedule, it can certainly make a difference. Arrange the shoes neatly in a shoe-rack. Get rid of stuff from your fridge door. Stack important mails and papers in decorative boxes to hide the mess

Spray Paint to Add Colors to the Room

Whether it is giving a funky makeover to the old mailbox or decorating the kids’ room, spray paint is a great tool for an affordable makeover. You can use a colour matching your furniture or go wild with bright hues. Either way, the end result will surely be worth the effort.

Don’t forget to remove the dirt and rust before using the spray paint. A base of neutral colors rust-proof paint is a good idea.

Simple ideas like re-adjusting your room furniture, replacing bed sheets with white linen or covering furniture with colourful fabric work wonder to give your house the needed makeover.