09 February 2010
I have the following doubts in computation of TDS on salaries.
1).If a person has borrowed housing loan for construction of house and he stays in rented house nearby. Can he claim both benefits i.e interest on housing loan upto Rs.150000/- and rent u/s 10(13)?
2).If the housing loan borrowed is in joint names, and the annual housing loan interest comes to say Rs.160000/-. Can both the joint owners claim housing loan interest benefit upto Rs.150000/- or Rs.75000/- each?
3).If person borrows housing loan for constructing a house which is not in his name, can he claim housing loan interest upto Rs.150000/-?
4).Whether post office RD qualifies for deduction u/s 80C?
5).In respect of childrens tuition fees which qualifies for deduction u/s 80C, whether the limit of Rs.24000/- still applies or its upto Rs.1,00,000/-?
6).In respect of life insurance premium which qualifes for deduction u/s 80C, if the policy premimum is also paid on his spouse, children and his dependent parents and siblings. Whether it all qualifies for deduction u/s 80C or only on him, his spouse and his children or also on his dependent parents and siblings?
Answer: 1) He can claim deduction u/s 10(13A) but then he for claiming deduction upto Rs. 1,50,000 he should not get any benefit from the House Property (sec 23(3))and if he is getting any benefit then this House will be taxable as LET-OUT THE HOUSE PROPERTY(Sec 23(1)), but if he is not getting any benefit then he can claim Interest deduction u/s 24(b), i.e., upto Rs. 1,50,000.
2) Both person can claim Rs. 1,50,000 deduction or actual Interest whichever is less. (section 26)
3) No, he cannot claim deduction because he is not owner of the House Property.
4) What is RD… However NSC VII & VIII issues are available for deduction 80C.
5) This will be included for find out What is total amount is available for deduction purpose and limit is still aggregate Rs. 1,00,000 for 80C, 80CCC & 80CCD.
6) Deduction for Insurance premium for deduction 80C is applicable only for Individual, spouse and Children (Whether dependent or not) only. This is not available for parents or other person, whether dependent or not.
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