In the Finance Budget 2015, Arun Jaitley as well proposed to enhance the limitation of
deduction on rent amount paid from 24,000 rupees per year to 60,000 rupees per
year giving break to those people who do not own their personal home and used
to live in the rented house.
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our FM Arun Jaithley has lifted the utmost
deduction obtainable under Sec 80GG to 60,000 per year from the present 24,000
rupees per year. This will impact those people who aren’t salaried workers or
don’t get House Rent Allowance as a part of the salary. According to the
current laws of tax, such people are able to claim tax deduction on rental fee
paid from the gross income tax up to 24,000 rupees per year. This limitation is
at present planned to be enhanced to 60,000 rupees per year. As a consequence,
consultants or the self employed individuals like teachers working in coaching
classes and adhoc workers will be included in this proposed modification.
At present, salaried people (getting HRA with salary)
claiming for deduction on rental fee paid from their salaries under sec 10
aren’t affected by the new proposed modification in the tax law. The tax
deduction under sec 80 GG is accessible to any individual who doesn’t receive
HRA with his or her salary. Tax deduction is accessible with reference to the
rental charge paid by any individual for his or her own individual housing in a
specific year. A statement in the Form 10 BA must be proposed by the particular
individual to benefit from this tax deduction. At present, the sum of tax
deduction permitted is the smallest amount of the subsequent: Rental charge
paid in excess of 10 percent of the salary (basic salary + Dearness Allowance)
or 25 percent of the total income (prior to subtracting any tax deductions) or
2000 rupees per month.
Any salaried worker who doesn’t receive house
rent allowance as a fraction of his or her salary or any individual, who don’t
have any kind of salaried income, can benefit from the deduction under sect 80
GG owing to rent payment. The present provision imparts an utmost deduction of
2000 rupees per month that is regularly not sufficient to cover even 50 percent
of the definite rental charge paid.
Though making no modification in the personal slabs of
Income Tax in the Central Budget of 2016-17, Arun Jaitley, the Finance Minister
of India on Monday declared the deduction for extra interests of 50,000 rupees
per year for the loans up to 35 lakh rupees sanctioned in the year 2016-17 for
the people who are buying home for the first time, where the cost of house does
not go beyond 50 lakh rupees.
For those people earning lesser than the 5 lakh
rupees per year, the Finance Minister declared to lift the amount of taxation
rebate from 2000 rupees to 5000 rupees giving an extra relief of 3000 rupees in
their liability of tax. In the Central Budget of the year 2016
