In the latest budget 2020, the finance minister announced
that the limit on tax incentives on interest paid on borrowed funds for
self-acquired houses would be increased.
If it is in the case of joint ownership, the tax benefit is
also doubled. According to the income tax rules, all the joint owners can avail
the tax benefits on a joint home loan on the basis of certain conditions which
need to be met. Benefit of Joint Ownership
It should be kept in mind that housing loan buyers can avail
the income tax benefit under Section 80C, 80CC, 80D, Under 24 (b) can accept a
combination of different discounts and discounts. EMI is the monthly
installment (EMI) equivalent to a home loan.
Benefit of Joint Ownership.
It consists of two parts - interest and capital repayment.
The income tax benefit on capital payments or major parts comes under the limit
of 80C, the maximum limit per year. The interest portion falls under section 24
(b) and the limit for self-occupied house is Rs. 2 lakhs.
Important Condition to Met Before Claiming Tax Benefit in Joint Name
.
However, Any housing loan of Rs 40 lakh at an annual
interest rate of 10% will earn interest of about Rs 44 lakh in the initial
financial year. According to the Income Tax Act, a single borrower can get a
tax benefit .
Conclusion, a big savings for other investments. Important conditions to
be fulfilled before claiming tax benefit in joint name The following guidelines
must be fulfilled before claiming income tax benefits for joint ownership home.
Important Condition to Met Before Claiming tax break in Joint Name
1. Both the houses should be registered in the name of the
recipient.
2. The share of rights over the property should even be
clearly mentioned within the registry papers.
3. The division of interest on the basis of the share of
property rights may be claimed in the same proportion by each co-applicant.
Example: Suppose a home ownership ratio of 50:50.
Feature of this Excel Utility :-
1) This
Excel utility prepare as per the Finance Budget 2020 with New Section 115BAC
New and Old Tax Regime.
2) This
Excel Utility have the Salary Structure as per all Non-Govt ( Private )
Concerned Salary Pattern.
3) This
Excel utility can prepare at a time your
(1)
Your Income Tax
Computed Sheet as per Budget 2020
(2)
Automated Income Tax Calculation of House Rent
Exemption U/s 10(13A)
(3)
Automated Prepare
Income Tax Revised Form 16 Part A&B and Part B
(4)
Automated Prepare the
Income Tax Form 12 BA
(5)
The instruction has in
this Utility how to choose the New and Old Tax Regime, so you can easy
understand which Regime you will be benefited.
(6)
This Excel Utility have
all the amended Income Tax Section as per Budget 2020
