I am going to switch my job and I will be getting 13.78 lacs salary there. How can I save my tax ?
My investments for previous salary (7 lacs) were:
1) PPF - 24000 (2000 monthly)
2) ELSS - 72000 (6000 monthly)
3) EPF - 33360
4) Term insurance - 4000
This almost covers my section 80C and I was also saving tax with HRA.
Now with my increased salary of 13.78 lacs, I can think of saving tax with home loan.
My job is in Hyderabad and my hometown is in Vadodara.
My Plan is to take two 2BHK flats of 16.25 lacs each in Vadodara (hometown) with 2.25 lacs as other charges (service tax + docs + maintenance etc) on each. And I am planning to take home loan of 30 lacs to utilise section 24 and section 80 EE. Aim of this plan is to save tax + investment.
Why Vadodara?
Because Its not decided where I am going to settle in future(either Pune or Hyderabad or Bangalore) and my parents can take care of the house in Vadodara.
new salary structure:
Basic = 6.50 lacs
HRA = 2.60 lacs
Conveyance allowance = 19.2 k
Medical allowance = 15 k
LTA = 80 k
Special allowance = 2.758 lacs
PF = 78 k
Total = 13.78 lacs
I know I can save tax on LTA, conveyance and medical allowance.
Questions:
1) Is my planning correct or it require some modifications?
2) Any other way to save tax
3) Can I take combined loan for 2 flats or it depends on Bank?
4) Should I take separate loan for each flat or combined?
5) For separate loans, can I take benifit of no limit on max limit of loan interest on 2nd home loan?
Any help would be appreciable.
CAclubindia
