Loan India - Or Investment Plans To Save Tax!

By Author: Kirthy Shetty
Total Articles: 2541
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Planning to buy a home or flat to enjoy tax exemptions? You must have been paying too much of tax as your income is high. But there are ways to fulfil your dream. Buy a home and save on tax too. You must apply for a housing loan so that you can enjoy tax benefits. Income tax Act covers these under two different sections such as: sec 24(b) and section 80(c) of the 1961 income tax act.

You must have taken a loan from a registered bank or financial institutions. Any money borrowed from private agencies, chit funds, friends and family will not qualify for tax benefits.

This will allow you a deduction of up to 1 lakh rupees on the principal amount repaid. Section 24(b) covers the interest payment made to your lender on the borrowed funds. You qualify for such tax benefits if you have taken a housing loan for construction of house, purchase of house or renovation or repairs of your house too are covered. With the help of these type of borrowed funds you can make use of the loan documents and win a deduction of up to Rs.1,50,000 of your total liability of tax. If your liability is around 40,000, then you save that whole ...
... amount.

Carry out your repairs and renovations by availing a small amount of borrowed funds. Refurbish your house and increase the equity value of your house at the same time you can make use of these papers to save your tax at office. It serves dual benefits isn't it? Then, just go for it

ULIP funds, insurance policies and tax saver funds can also help you for the same purpose. Learn more about these funds in order to carefully invest in them. To deduct medical expenses they need to exceed 7.5% of your income. Moving expenses, professional fees and education, even the cost of preparing your taxes are all deductible, but only if those expenses total more than 2% of your income. But, fortunately, there is a potentially large tax deduction available to investors that can help.

Tax planning entails selecting correct saving instruments and making appropriate investments at the right time. If you are ready to take small efforts then you can successfully condense your tax liabilities by engaging yourself in effective tax planning. Invest rightly so that you don't repent when your tax is deducted unnecessarily. Careful considerations of your options are required.

Kirthy Shetty, Platinum Author.
NRI Demat Account: http://www.kotak.com/Kotak_BankSite/nri/investments/demat-service
More on NRI Home Loan: http://www.kotak.com/Kotak_BankSite/nri/home-loans