Salary for the above purpose includes the basic salary, dearness allowance and any fixed commission as percentage of turnover.
Cash purchases of goods services which are worth more than Rs 2 Lakh purchases of car worth more than Rs 10 Lakh will be subject to TCS (Tax collection at Source).
The quantum of deduction, will depend on where the employee is staying.
Related:- Compare Best Home Loan Deals for second Home.Interest paid chanel flats discount during this time can be claimed as the tax deduction in five equal instalments starting from the year in which the construction of the property is completed.The loan should be sanctioned on or after April 1, 2016.Hence, you can claim the full deduction, even if you have occupied the rented premises for one month.50,000 on interest paid on housing loans.The period from borrowing money until construction of the house is completed is called Pre-construction period.This rule now also applies to EPF.AY is Assessment Year).The property to be classified as deemed rented out is at the individuals discretion.Payment of interest on Home Loan (Section 24/80EE) The interest paid up to Rs 2 lakhs on home loan for self-occupied home is exempted u/s.To meet the high costs of living in rented accommodations, employers pay house rent allowance (HRA) to their employees.The value of house should not be more than Rs 50 Lakh.
Also, where the loan has been taken for reconstruction, repairs or renewal, only.30,000 shall be allowed as deduction.
It can be claimed only after the construction is finished.
1.5 lakh and interest up-to a limit.
However, the tax benefit differs, in each case.To avail this benefit the value of home should not exceed Rs 50 lakhs and loan should not be more than Rs 35 lakhs.Income tax rebate on second home will be as follows: Full interest on home loan is allowed as deduction for the let out property so there is no limit.The I-T Department has not specified if the house should be self-occupied to claim this deduction.The other property, being self-occupied, will have NIL income, but interest deduction on the corresponding home loan, if any, is limited.2 lakh.50 of the salary (for employees staying in metropolitan cities of Mumbai, Kolkata, Delhi or Chennai or 40 of the salary (for employees living elsewhere).Consequently, no HRA tax benefit shall be available, if the rent paid by you does not exceed 10 of the salary for the relevant period.Download Tax Planning eBook for FY 2016-17 AY 2017-18 (2.46 MB).Lets take a simple example One house is rented out, another used for residence.