(Budget speeches) Union Budget 2019: have you ever purchased an inexpensive house and electrical|an electrical} automobile this yr or ar about to do so? the nice news is that you just might not have to be compelled to pay any tax on gross remuneration of over Rs thirteen lakh provided you absolutely employ the advantages of tax-saving investments and watch out of some provisions whereas getting the house and also the electric vehicle.
(Budget speeches)On purchase of an inexpensive house, at the side of deduction of Rs two lakh on payment of equity credit line interest u/s twenty four of taxation Act, you’d get extra deduction of Rs one.5 lakh underneath a replacement section, 80EEA, on the loan taken for residential house property from any financial organization subject to the subsequent conditions:
(i) loan has been sanctioned by a financial organization throughout the amount starting the Apr one, 2019 to March thirty one, 2020;
(ii) the revenue enhancement worth of house property doesn’t exceed Rs forty five lakh; and
(iii) you do not own any residential house property on the date of sanction of loan.
(Budget speeches)So, by taking edges of section twenty four and section 80EEA along, you’ll get deduction up to Rs three.5 lakh if you pay Rs three.5 lakh or additional interest on equity credit line.
However, to avail edges u/s 80EEA, you ought to even be careful that the carpet space of the residential unit does not exceed sixty centare in metropolitan cities like Bengaluru, Chennai, Delhi|city|metropolis|urban center} urban center Region (limited to Delhi, Noida, bigger Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Calcutta and Bombay (whole of Bombay Metropolitan Region) or ninety centare in cities or cities aside from the higher than mentioned metropolitan cities.
Income Tax Calculator: Know post-Budget 2019 taxation out go here
Similarly, to avail another deduction of Rs one.5 lakh u/s 80EEB on purchase of an electrical vehicle, you’ve got to meet the subsequent conditions:
(i) the loan has been sanctioned by a financial organization together with a non-banking money company throughout the amount starting on the Apr one, 2019 to March thirty one, 2023; and
(ii) you do not own the other electrical vehicle on the date of sanction of loan.
(Budget speeches) Apart from fulfilling the higher than conditions, you furthermore may have to be compelled to take full advantage of tax-saving investments of Rs one.5 lakh u/s 80C, take insurance for your family by paying premium of Rs twenty five thousand or additional and for your adult oldsters with premium of Rs fifty thousand or additional, contribute Rs fifty thousand or additional to NPS and pay interest of Rs three.5 lakh or additional on equity credit line, so as to pay no tax on gross annual remuneration of Rs 13,25,000.
(Budget speeches) Assuming that a salaried assessee has no alternative financial gain, let’s calculate what proportion tax should be paid by the person.
Non salaried assessees, World Health Organization do not get the good thing about normal deduction, might find yourself paying no tax on gross financial gain of Rs 12,75,000, provided higher than conditions ar consummated.