Latest Income Tax Exemptions FY 2017-18 - AY 2018-19 - Tax Deductions

20/03/2018 Latest Income Tax Exemptions FY 2017-18 / AY 2018-19 | Tax Deductions
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Income Tax Exemptions FY 2017-18 : List of important IT

Deductions for AY 2018-19
Last updated: April 11, 2017 | by Sreekanth Reddy — 262 Comments
Budget 2017-18 & the Finance Bill 2017 have been tabled in Parliament. The income tax rate for
those earning between Rs 2.5 lakh and Rs 5 lakh has been halved to 5%. Except this change, all
other Income Tax Slab rates have been kept unchanged by the Finance Minister for the
Financial Year 2017-18 (Assessment Year 2018-2019) .
Tax planning is an important part of a nancial plan. Whether you are a salaried individual, a
professional or a businessman, you can save taxes to certain extent through proper tax
planning.
The Indian Income Tax act allows for certain Tax Deductions / Tax Exemptions which can be
claimed to save tax. You can subtract tax deductions from your Gross Income and your taxable
income gets reduced to that extent.
Let us understand all the important sections and new proposals with respect to Income Tax
Exemptions FY 2017-18. I hope you nd this list useful and helps in planning your taxes well in
advance.
List of Income Tax Exemptions FY 2017-18 / AY 2018-19 (Chapter VI-

A deductions list)
https://www.relakhs.com/income-tax-exemptions-fy-2017-18-list/ 1/90
Section 80c
The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only.
The various investment avenues or expenses that can be claimed as tax deductions under
section 80c are as below;
PPF (Public Provident Fund)
EPF (Employees’ Provident Fund)
Five year Bank or Post of ce Tax saving Deposits
NSC (National Savings Certi cates)
ELSS Mutual Funds (Equity Linked Saving Schemes)
Kid’s Tuition Fees
SCSS (Post of ce Senior Citizen Savings Scheme)
Principal repayment of Home Loan
NPS (National Pension System)
Life Insurance Premium (Read : ‘Best Term insurance plans‘)
Sukanya Samriddhi Account Deposit Scheme
(Read : ‘Tax Saving Investment Options u/s 80c | In whose name can they be Invested?’)
Section 80CCC
Contribution to annuity plan of LIC (Life Insurance Corporation of India) or any other Life
Insurance Company for receiving pension from the fund is considered for tax bene t. The
maximum allowable Tax deduction under this section is Rs 1.5 Lakh.
Section 80CCD
Employee can contribute to Government noti ed Pension Schemes (like National Pension
Scheme – NPS). The contributions can be upto 10% of the salary (salaried individuals) and Rs
50,000 additional tax bene t u/s 80CCD (1b) was proposed in Budget 2015.
As per Budget 2017-18, the self-employed (individual other than the salaried class) can now
contribute up to 20% of their gross income and the same can be deducted from the taxable
income under Section 80CCD (1) of the Income Tax Act, 1961, as against current 10%.
To claim this deduction, the employee has to contribute to Govt recognized Pension schemes
like NPS. The 10% of salary limit is applicable for salaried individuals only and Gross income is
applicable for non-salaried. The de nition of Salary is only ‘Dearness Allowance.’ If your
employer also contributes to Pension Scheme, the whole contribution amount (10% of salary)
can be claimed as tax deduction under Section 80CCD (2).
Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot
exceed Rs 1,50,000 for the nancial year 2016-17. The additional tax deduction of Rs 50,000
u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.
(Read : ‘NPS Scheme – Pros & Cons‘)
Contributions to ‘Atal Pension Yojana‘ are eligible for Tax Deduction under section 80CCD.
Section 80D
Deduction u/s 80D on health insurance premium is Rs 25,000. For Senior Citizens it is Rs
30,000. For very senior citizen above the age of 80 years who are not eligible to take health
insurance, deduction is allowed for Rs 30,000 toward medical expenditure.
Preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family
can be claimed as tax deductions. Remember, this is not over and above the individual limits as
explained above. (Family includes: Self, spouse, dependent children and parents).
Section 80DD
You can claim up to Rs 75,000 for spending on medical treatments of your dependents
(spouse, parents, kids or siblings) who have 40% disability. The tax deduction limit of upto Rs
1.25 lakh in case of severe disability can be availed.
To claim this deduction, you have to submit Form no 10-IA.
Section 80DDB
An individual (less than 60 years of age) can claim upto Rs 40,000 for the treatment of
speci ed critical ailments. This can also be claimed on behalf of the dependents. The tax
deduction limit under this section for Senior Citizens is Rs 60,000 and for very Senior Citizens
(above 80 years) the limit is Rs 80,000.
To claim Tax deductions under Section 80DDB, it is mandatory for an individual to obtain
‘Doctor Certi cate’ or ‘Prescription’ from a specialist working in a Govt or Private hospital.
For the purposes of section 80DDB, the following shall be the eligible diseases or ailments:
Neurological Diseases where the disability level has been certi ed to be of 40% and
above;
(a) Dementia
(b) Dystonia Musculorum Deformans
(c) Motor Neuron Disease
(d) Ataxia
(e) Chorea
(f) Hemiballismus
(g) Aphasia
(h) Parkinson’s Disease
Malignant Cancers
Full Blown Acquired Immuno-De ciency Syndrome (AIDS) ;
Chronic Renal failure
Hematological disorders
Hemophilia
Thalassaemia
Section 80CCG
Tax Bene ts of Rajiv Gandhi Equity Savings Scheme (RGESS) under section 80CCG has been
withdrawn. However, if you have claimed this deduction in current FY 2016-17, you can claim
the deduction for the next two Financial Years too.
Section 24 (B) (Loss under the head Income from House Property)
Tax bene t on loan repayment of second house will be restricted to Rs 2 lakh per
annum only (even if you have multiple house the limit is still going to be Rs 2 Lakh only
and the ceiling limit is not per house property).

The unclaimed loss if any will be carried forward to be set off against house property
income of subsequent 8 years. In most of the cases, this can be treated as ‘dead loss‘.
I believe that this is a major blow to the investors who have bought multiple houses on
home loan(s) with an intention to save taxes alone.

As of now (till FY 2016-17), interest paid on your housing loan is eligible for the following
tax bene ts ;
Municipal taxes paid, 30% of the net annual income (standard deduction) and
interest paid on the loan taken for that house are allowed as deductions.
After these deductions, your rental income can be NIL or NEGATIVE and is called
‘loss from house property’ in the latter case.
Such loss is currently allowed to be set off against other heads of income like
Income from Salary or Business etc. which helps you to lower you tax liability
substantially.
Section 80E
If you take any loan for higher studies (after completing Senior Secondary Exam), tax
deduction can be claimed under Section 80E for interest that you pay towards your Education
Loan. This loan should have been taken for higher education for you, your spouse or your
children or for a student for whom you are a legal guardian. Principal Repayment on
educational loan cannot be claimed as tax deduction.
There is no limit on the amount of interest you can claim as deduction under section 80E. The
deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.
Section 80EE
This was a new proposal which had been made in Budget 2016-17. The same will be continued
in FY 2017-18 / AY 2018-19 too. First time Home Buyers can claim an additional Tax deduction
of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met
for claiming tax deduction under section 80EE.
The home loan should have been sanctioned during / after FY 2016-17.
Loan amount should be less than Rs 35 Lakh.
The value of the house should not be more than Rs 50 Lakh &
The home buyer should not have any other existing residential house in his name.
Section 80G
Contributions made to certain relief funds and charitable institutions can be claimed as a
deduction under Section 80G of the Income Tax Act. This deduction can only be claimed when
the contribution has been made via cheque or draft or in cash. In-kind contributions such as
food material, clothes, medicines etc do not qualify for deduction under section 80G.
The donations made to any Political party can be claimed under section 80GGC.
W.e.f FY 2017-18, the limit of deduction under section 80G / 80GGC for donations made in
cash is reduced from current Rs 10,000 to Rs 2,000 only.
Section 80GG
The Tax Deduction amount under 80GG is Rs 60,000 per annum. Section 80GG is applicable
for all those individuals who do not own a residential house & do not receive HRA (House Rent
Allowance).
The extent of tax deduction will be limited to the least amount of the following;
Rent paid minus 10 percent the adjusted total income.
Rs 5,000 per month.

25 % of the total income.
(If you are claiming HRA (House Rent Allowance) of more than Rs 50,000 per month (or) paying
rent which is more than Rs 50,000 then the tenant has to deduct TDS @ 5%. It has been
proposed that the tax could be deducted at the time of credit of rent for the last month of the
tax year or last month of tenancy, as applicable.)
Rebate under Section 87A
Tax rebate of Rs 2,500 for individuals with income of up to Rs 3.5 Lakh has been proposed in
Budget 2017-18.
Only Individual Assesses earning net income up to Rs 3.5 lakhs are eligible to enjoy tax
rebate u/s 87A.

For Example : Suppose your yearly pay comes to Rs 4,50,000 and you claim Rs 1,50,000
u/s 80C. The total net income in your case comes to Rs 3,00,000 which makes you
eligible to claim tax rebate of Rs 2,500.
The amount of tax rebate u/s 87A is restricted to maximum of Rs 2,500. In case the
computed tax payable is less than Rs 2,500, say Rs 2,000 the tax rebate shall be limited to
that lower amount i.e. Rs 2,000 only.

The Tax Assesse is rst required to add all incomes i.e. salary, house income, capital
gains, business or profession income and income from other sources and then deduct the
eligible tax deduction amounts u/s 80C to 80U and under section 24(b) (Home Loan
Interest) to come up with the net taxable income.

If the above net taxable income happens to be less than Rs 3.5 lakhs then the tax rebate
of Rs 2,500 comes in to the picture and should be deducted from the calculated total
income tax payable.
Section 80 TTA
Deduction from gross total income of an individual or HUF, up to a maximum of Rs. 10,000/-,
in respect of interest on deposits in savings account with a bank, co-operative society or post
of ce can be claimed under this section. Section 80TTA deduction is not available on interest
income from xed deposits.
Section 80U
This is similar to Section 80DD. Tax deduction is allowed for the tax assessee who is physically
and mentally challenged.
Conclusion
It is prudent to avoid last minute tax planning. Do not invest in low-yielding life insurance
polices or in any other nancial products just to save taxes. It is better you plan your taxes
based on your nancial goals at the beginning of the Financial Year itself. Plan your taxes from
April 2017 itself, instead of waiting until late December 2017 (or) January 2018.
(Read : ‘Best ELSS Tax Saving (Sec 80c) Mutual Fund Schemes for FY 2017-18‘)
It is OK to pay some taxes when you can not save or cannot invest in right nancial products.
But, do not invest just to save TAXES. The cost of buying wrong nancial products may
outweigh the cost of taxes. Tax Planning is not a goal but a tool. Remember “Tax Planning
alone is not Financial Planning.”
Also, kindly understand the tax treatment of the selected investment products across the
different investment stages (i.e., investment, accrual & withdrawal) and then invest. (Read :
‘Tax treatment of various Financial Investments‘)
I believe that the above list is useful for your Tax Planning purposes. The above Income Tax
Exemptions FY 2017-18 are applicable for nancial year 2017-2018 (Assessment Year 2018-
2019).
(Image courtesy of Stuart Miles at FreeDigitalPhotos.net) (Post rst published on : 27-March-

2017)
Related Posts
Tax Treatment of various Financial Investments
TDS deducted by Employer but not Deposited? How to check TDS details online?
How to link Aadhaar Number with PAN in three simple steps?
Tax ling : common reasons for getting a tax notice
Sreekanth Reddy
Sreekanth is the Man behind ReLakhs.com. He is an Independent Certi ed Financial Planner
(CFP), engaged in blogging & property consultancy for the last 7 years through his rm ReLakhs
Financial Services . He is not associated with any Financial product / service provider. The main
aim of his blog is to "help investors take informed nancial decisions." "Please note that the views given in this
Blog/Comments Section/Forum are clari cations meant for reference and guidance of the readers to explore
further on the topics/queries raised and take informed decisions. These should not be construed as investment
advice or legal opinion."
Connect With Me : Facebook Google+ Twitter LinkedIn
Comments
Anand Gaikwad says:

March 19, 2018 at 2:53 pm
1. Recurring deposits (RD) with Bank / Post of ce with self name and dependents name are
eligible for deduction from Salary Income.?
2.Insurance Premium paid for Parents eligible for deduction from salary income ?
3.Mutual Funs Investment with Dependants Name Eligible for Deduction from Salary
Income ?
please guide.
Reply
Sreekanth Reddy says:

March 20, 2018 at 4:16 pm
Dear Anand,
1 – No.
2 – If you pay life insurance premium on policies which are in name of parents,
brothers, sisters or In-laws then such amounts are not eligible to claim u/s 80C.
Kindly read : Tax Saving investment options u/s 80c : In whose name can they be
invested?
3 – Investments in ELSS funds which are in your name alone can be claimed as tax
deduction. ELSS funds can be held in joint-names, but only rst-applicant (primary
holder) who is a tax-assessee can claim the tax deduction.
Reply
Anand Gaikwad says:

March 20, 2018 at 4:28 pm
Thank you So much Sir..
Reply
sunil says:
March 19, 2018 at 12:23 pm
Dear Sir,
Please tell me what is the housing loan and interest for nancial year 2017-2018 whether
principal and interest how much limit please tell me what is the exempt principal and
Interest amount how much we have to show, please give me reply ASAP.
Thanks
Sunil
Reply

March 20, 2018 at 4:12 pm
Dear sunil,
Principal repayment : Up to Rs 1.5 Lakh can be claimed u/s 80 c
Up to Rs 2 Lakh can be claimed as tax deduction as loss under the head ‘income
from house property’.
Reply
Shirin says:
March 8, 2018 at 7:27 pm
Hi
My CTC is 100000.
Home loan – 125000/Year

Tuition fee – 400000/Year
Rent – 8000/Month.
Please suggest me, where do I invest so that my TAX deduction is little less – Not 80000
Reply

March 10, 2018 at 11:30 am
Dear Shirin,
Home loan interest can be claimed u/s 24b.
Tuition fee up to Rs 1.5 lakh can be claimed u/s 80c.
If you have health insurance then premium paid (the max limits as explained in the
above article) u/s 80D.
Other possible options, I have given in the above article.
Reply
Chinmay says:
March 7, 2018 at 9:03 am
Hello sir
If I habe invested 1.50 lacs in ppf under 80c and 50000 under 80ccd(1b). And my employer’s
contribution in 59000 in nps then under 80ccd(2) do i get exemption of 59000 .? Which
means total exemption would be 2,59,000 ?
Reply
Kartheek says:
March 8, 2018 at 12:17 am
Hi Chinmay,
You will get deductions as under

80c : 1,50,000
80ccd(1b) : 50,000
80ccd(2) : 59,000 (sub to maximum of 10% of your salary after including this 59000
to your salary)
so,you will get total 2,59,000 as deduction
Reply
Chinmay says:
March 8, 2018 at 12:21 am
Thank you
Reply
Kriptha says:
March 2, 2018 at 1:56 pm
Hi,
I have a doubt in HRA…

I am paying the rent of 8300 per month, but I don’t have rental agreement or PAN details of
the owner and I have only rental receipt. Can I show this 8300 in HRA without rental
agreement and PAN and avail the tax bene t for 2017/18?
Reply

March 3, 2018 at 12:26 pm
Dear Kriptha,
Ideally, you should get the rental agreement done.
If the rent paid is more than 1 lakh per annum, it is mandatory for the employee to
report PAN of the landlord to the employer.
In your case it is less than Rs 1 lakh pa, so you may just submit the receipts and claim
HRA. Kindly make the rent payments through non-cash mode.
But suggest you to kindly get the agreement done and request for PAN card details
from your landlord.
Reply
Shyama says:
March 2, 2018 at 12:26 am
Sir
I am married but no child. I am paying tuition fee of a child leaving under the same roof can
I get the bene t of the tuition fee in Income tax? Thanks
Reply
Geethu says:
February 7, 2018 at 6:46 pm
Is 80 CCD2 included in 80C or can I get additional tax bene t ?
Where to claim stamp duty and registration charges for new purchase of house?
Reply

Dear Geethu,
Are you referring to Rs 50k for NPS investment?
If you have made investment in NPS then can claim up to Rs 50,000 u/s 80CCD(1B),
this is over and above Rs 1.5 Limit u/s 80c.
If your employer also contributes to Pension Scheme, the whole contribution

amount (10% of salary) can be claimed as tax deduction under Section 80CCD (2).
Stamp duty and registration fee can be claimed u/s 80c.
Reply
Dilendra nayak says:

February 3, 2018 at 9:01 am
Dear sir
i am mutual fund distributor
Having 4 employees total salary paid to this 40000 per month
My gross income is 16 lakh
My housing loan is continuing 14000 per month
Pls suggested how much tax i want to pay as a professional
Reply

Dear Dilendra,
Kindly consult a CA .
Reply
CA Anoop Tiwari says:

February 8, 2018 at 11:28 am
Dear Dilendra
May I help you in this regard
CA Anoop Tiwari
8800739039
caakt2011@gmail.com
Reply
Sreedhara says:
Dear Srikanth sir
I’m a government employee from Karnataka my net salary about 8.5L…. My savings u/s 80c
is more than 1.5L except NPS (80CCD1) can I add this amount to u/s 80CCD1(B)?????
Also can I show Employer contribution u/s 80CCD2 Without adding this amount to Salary
income?????
Please reply me… I’m waiting…
Thank you
Reply

Dear Sreedhara,
If you have made investment in NPS then can claim up to Rs 50,000 u/s 80CCD(1B),
this is over and above Rs 1.5 Limit u/s 80c.
Reply
Sarada says:
January 31, 2018 at 2:54 pm
Hi Sreekanth,
Can you please explain about NPS? Is this exempted upto Rs. 50,000/- over and above Rs.
1,50,000/- U/s. 80 C?
Reply

Dear Sarada..Yes, it is over and above Rs 1.5 Lakh. This additional Rs 50k can be
claimed u/s 80CCD (1b).
Related article: National Pension Scheme (NPS) – Why it is not a good Investment
Option?
Reply
Sajjan Ahlawat says:

Is bye pass surgery come under the 80ddb or not, Sir
Reply

January 30, 2018 at 12:16 pm
Dear Sajjan,
I am not very sure on this.
Kindly check with a CA.
Reply
raju kb says:
January 25, 2018 at 12:39 pm
dear Mr. Srikanth,
I have a taken home loan at my native place near Tirupati. my parent residing there. now
iam residing at Hyderabad in rental house for job purpose . can I claim both the Home loan
bene ts and HRA bene ts.
for exiting home loan I taken top-up loan for house repair purpose, these amount interest
and principle also can club and show in the home loan tx bene ts.
kindly clarify.
Reply

January 27, 2018 at 10:52 am
Dear Raju,
Yes, you can claim HRA and also the tax rebate on Home loan.
You can declare the own property as a Self-occupied one.
Top up home loan : You can get tax deduction bene t on the top-up loan if you have
receipts/documents to prove that the loan taken has been used for
acquisition/construction/repair/renovation of a residential property. The tax
bene t is available only on the interest portion of the loan under section 24.
Kindly read :
Self Occupied Property (SOP) & Tax implications
Top-up loans
Reply
Gyanendra kumar Dalai says:

sir,
I am a sallaried employee. In my village I had purchased an agricultural land of 6 lakh in
2013 in a distant location.Now I sold that at 10 lakh and purchased another agricultural land
of 10 lakh.Will capital gain be applicable in I.Tax calculation ?Please suggest.
Reply

January 22, 2018 at 10:53 am
Dear Gyanendra,
If your agricultural land is in rural area, such land is not treated as Capital asset and
hence no capital gain taxes are levied. Agricultural land in Rural Area India is not
considered a capital asset. Therefore any gains from its sale are not taxable under
the head Capital Gains.
Kindly read : Agricultural land sale and tax implications!
Reply
Ankit says:
Dear Sir,
I have reimbursed Rs. 17000/- as medical expenses by providing my employer the

necessary bills.
kindly tell me that while ling Income Tax return for AY 2018-19, how much can I claim and
under which section.
Reply
CA Rama Mohan D Reddy says:

January 23, 2018 at 11:22 pm
As per Section 17(2) of the Income-tax Act, 1961,medical reimbursements upto Rs
15000/- shall not be taxable.Any amount over and above the speci ed limit shall be
added to the salary.
Thanks and Regards,

CA Ram Mohan D Reddy
8074273870
Reply
B.D.Garg says:
R/Sir,
I am a salaried person while my wife is a housewife. We have a Joint Saving Account in a
bank. Please tell me whether I should add the interest income from this Joint Saving A/c in
my income for tax purposes. If yes, how much?
Reply

January 15, 2018 at 11:53 am
Dear Mr Garg,
If the deposits in joint ac is contributed by only you then you have to add the
interest income in your ITR. You may request your banker to issue TDS certi cates
(if any) in your name .
Reply
R.PRASANNA says:
Sir, For claiming relief under Section 89(1), is it necessary to le Income tax returns in the
preceding years to which the income pertains ? For eg., I am getting Arrears for the period
from 2010 to 2017. Is it necessary that to claim relief under 89(1), I should have led I.T
returns from 2010 to 2017 ?
Reply

January 9, 2018 at 11:34 am
Dear Prasanna,
I dont think it is mandatory to le ITRs of previous years.
Do remember to le Form 10E if you want to claim relief under section 89(1) in your
income tax return for this FY.
Suggest you to consult a CA.
Reply
RAM SINGH says:

Sir, Basic Pay in level 4th is 30500/- . Before July Travelling Allowance was 800/- And after
July 2017 is 1800/- How many Exemption will be in income tax during 2017-18?
Reply

Dear Ram..
Exempt to the extent of expenditure incurred for of cial purposes.
You may visit this link for more details..
Ex : If the Travelling allowance received is say Rs 1000 pm and the actual amount
spent by the employee is Rs 800, then only Rs 800 would be exempted as TA.
If RA received is say Rs 1000 pm and the actual amount spent is Rs 120 0pm then Rs
1000 would be exempted.
Reply
Muralidhara A S says:
Please tell me/clarify my doubt.
80 G under Income tax Act how much maximum deduction under this deduction for
Individual Person?
Please reply my Email.
Reply

Dear Muralidhara,
You may kindly go through this article..
Reply
Madhu says:
December 28, 2017 at 7:52 pm
Dear shreekant
I m a senior citizen, currently again working in the same company after retirement. I Hv
income from FD & also from salary. To claim rebate from ITax, I wish to do it under
80c,uoto 150000. Now as I Hv invested this in some ICICI prudential scheme, the next
premium date falls only on 4march 2018,& I Hv to submit the tax rebate details by next
month itself to my company for form 16 submission. Can this be deferred & submit the
same while ling return
Reply

December 29, 2017 at 11:27 am
Dear Madhu ji,
Yes, you can pay the premium in Mar’18 and can claim tax deduction u/s 80c in your
ITR while ling your Tax return.
Related articles :
Think beyond TAXES when investing!
Reply
Padma says:
My Annual package is 6.2Lpa.
I have education loan and I pay interest of 20000 (covered under 80E).
I took up a new policy recently of 22000 per year (80C).
My father is 100percent blind and we dont do any medical treatment or any insurance still
can I get the bene t under 80DD.
Please suggest me.
Thanks
Reply

Dear Padma,
May I know your Insurance policy details (Name of the plan)??
As per the IT act – ‘The taxpayer has incurred expenses for medical treatment
(including nursing), training & rehabilitation of the differently abled dependent or
the tax payer may have deposited in a scheme of LIC or another insurer for
maintenance of the dependent’, can claim tax deduction.
Reply
Padma says:
I have opted for jeevan Anand on my name with sum insured of 3Lakh and my
mother is nominee.
I need info on 80DD my father is 100%blind.
Is medical bills or any insurance mandatory to get bene t under 80DD
Reply

Dear Padma,
I believe that legally one should have incurred the expenses for
medical treatment to claim tax exemption under 80DD. You may check
with any CA as well.
Reply
Vssarma says:
There is no need to incurr any expenditure on this count to

obtain rebate under section 80DD.
WAT ALL U HAV TO DO IS OBTAIN MEDICAL CERTIFICATE
from copetent athority prescribed in dat section
Reply
Pradeep says:
My Mother in law is purchasing a home, as she is not earning any, my wife and her sister
are working and paying the home loan EMI for that home. There by my wife and her sister
will be present in sale deed. I want to show that amount as rent paid to my mother in law. Is
that legal or not, please advise.
Reply

Dear Pradeep,
If I understand your query correctly – The property will be co-owned by your
Mother-in-law, your spouse and sister-in-law??
And you would like to take that house for rent and pay rentals to your mother-in-
law??
Reply
deepak says:
sir,
one of my home loan is a joint loan.(myself+wife).

We both are working & both want to claim the tax exemption.
what is the %(60-40, 70-30,etc) we can share both.,or is there any rule stating we both
have to claim 50-50 % only.
Regards
deepak
Reply

Dear Deepak,
If the ratio of ownership share has not been declared in the Sale deed, then the it
can be considered as 50:50 by default.
Kindly read : Joint home loan and tax implications!
Reply
deepak says:
sir,
I have two home loan..one is self occupied(myself).another home is at native.(occupied by

parents).
can I claim interest paid for both home loan.
If yes what is the % of claim against home loan for native home which is occupied by
parents.
both home loan are on my name.
Regards
deepak
Reply

Dear deepak,
If both are self-occupied, you need to declare either of them as a Let-out property.
The maximum loss that you can show under the head income from house property
is Rs 2 Lakh in a FY (both home loans put together).
Kindly read : Income from House property & tax implications!
Reply
deepak says:
Hi ,
THanks for the quick response.

1) I’m declaring my native home loan as let out property.
if I declare monthly rent as 1000INR,& my paid interest against native home
loan is 1Lakh INR,
then what is the interest amount eligible for tax exemption.
Regards
deepak
Reply

Dear Deepak.. Kindly go through the suggested article. It has details on
calculation of ‘income from house property’.
Reply
Harry says:
Hello, My mother was diagnosed with cancer 4 years back and was treated for the same
that time. Every year, she is required to undergo tests worth INR 25000 to ensure
everything is normal. Can this be claimed for tax exemption under 80DDB or only 80D. At
the time of operation, it was taken care by insurance so never claimed any tax deduction
then. Thanks in advance!
Reply

Dear Harry,
An individual (less than 60 years of age) can claim upto Rs 40,000 for the treatment
of speci ed critical ailments.
In this case, your mother has already been treated. So, I dont think tax deduction
can be claimed u/s 80DDB.
80D can be considered for preventive health check-up. (Limit is Rs 5k only).
Reply
Udayan says:
Dear Sreekanth ReddyGaru,
I & my wife are co-owners of a at which is rented. Monthly Rent is being

deposited by tenant 50:50 into our accounts separately after deducting
10%TDS.
We have taken home loan and co-borrowers. I am salaried and wife is
housewife.
I am paying EMI from my salary and wife is repaying her share equally
through rent received to her.
Total annual interest is Rs. 5, 70,000/- and principal is Rs.1, 90,000/- as per
Provisional Certi cate.
Requested your valuable advice on following:
1. How we should split interest, principal, 30%Standard deduction and
property tax, etc to claim income tax bene ts? Should it be in 50:50 %
2. Which rent should we consider as income i.e. before TDS deduction or
after TDS deduction?
3. Can my wife ll IT return and claim return of deducted TDS as she is in
lower income slab (rental income)?
4. Should we deduct monthly maintenance cost from income other than 30 %
std deduction?
Regards,
Reply

Dear Udayan,
1 – Ideally if no ownership share ratio is mentioned in Sale deed, the
tax bene ts can be claimed in the ratio of 50:50.
Kindly read : Income from house property & tax implications..
2 – Before TDS deduction, you can declare the TDS details in ITR while
ling your tax returns.
3 – Yes, she can.
4 – I believe it is inclusive in 30% std deduction.
Reply
Udayan says:
Thanks SreekanthGaru
Reply
Ajay Chandola says:

Very informative. Thank you so much
Reply
Anand says:
Hello Sreekanth,
I have take home loan in Jun 2013. I got home possession (key handover) in Jun 2017. Till FY
2016-2017 I was claiming only principal amount in section 80C. But this current year FY
2017-2018 I am claiming both principal amount in section 80C and Interest amount (Rs.
2,00,000.00) in section 24 c.
Question – Can I also claim Rs. 50,000.00 in 80EE (along with Interest amount (Rs.
2,00,000.00) in section 24 c) as this is my 1st House and 1st Home loan, Loan amount than
30 L and House value is 45 L?
Thanks
Anand
Reply

Dear Anand,
If you meet the eligibility criteria for Sec 80EE, you can claim it.
Reply
Raveendran says:
Hai Sreekath,
I paid income tax of Rs 132074/- as TDS and Rs 5942/- as Self assessment tax during the
assessment year 2016-17. The self assessment tax amount was less than 90% of my total tax
and it was paid during July 2017. But I received intimation u/s 143(1) for demand of tax of Rs
1010/- (234B interest – 475/- and 234C interest 531/-). I replied for the same saying I am
not agreeing. But now I received intimation u/s 154. Kindly advice whether I have to pay
this tax or further how to reply.
Thanks in advance
Reply

Dear Raveendran,
Can be penalty for the delay in payment of entire tax/advance tax.
Interest under section 234 B and 234 C show up when –
* You have not paid any Advance Tax & your tax payable in a year is Rs 10,000 or
more.
* You paid Advance Tax – but advance tax payments are less than 90% of (Final Tax
calculated less TDS)
Suggest you to consult a CA on this matter. In case, you agree with the IT dept,
suggest you to pay the dues and close this issue.
Reply
Sujatha says:
Hi, Thank you so much for the detailed explanation regarding IT. I am working in of ce
who is looking after IT and i am new to this. I dont want to enter just amount under each
section but want to know about the details of deduction under each section. Your blog was
so informative and very very useful to me. Once again thanks and hats off to your work.
Regards suja.
Reply
Krishna prasad says:

November 27, 2017 at 6:11 pm
Sir,
Your blog is quite interesting and educative.
I have a doubt reg. section 80 EE.
I took home loan of Rs.32 Lakh in 2016-17 for construction of house in own plot. Can I claim
bene t under section 80EE for the additional interest of 50,000/-?
In short,Is the bene t applicable to purchase as well as construction or is only for
purchase? I ful l all other conditions under the section.
Reply
November 28, 2017 at 11:21 am

Dear Krishna.. I believe that you can claim tax deduction u/s 80EE.
Reply
Prasad says:
Sir, Thank you very much for the clari cation.
Reply
Pawna Lake Camping says:

Shreekant, really worth reading. I have cleared all doubts regarding income tax.
I have subscribed and also informed my friends to subscribe.
Thanks,
Sonali
Reply
Mehaboob KM says:
Srikanth,
Your blog is something I have been searching for a long time, replete with all minute details
regarding the income tax exemptions. I had a lot of doubts about tax saving plans and now
I made up my mind, I guess.. Thanks again for being open against opting for tax saving
investment options if it is low yielding, i had the same the thoughts though and have
reservations about investing in something like LIC. I am planning invest in ESSL. I have a
home loan at present running (20 lakh) and I’m planning to take another home loan in the
next nancial year to save some additional taxes and make a good investment given the
appreciative value a residential property may get you in the future. For the current home
loan, I am claiming up to 1.8 lakhs tax exemption under home interest section. I hope I
would get another 2-lakh tax exemption option if I take another HL I guess. Please advise!
And I also I would like to contribute to your cause for giving the free advice if you are
interested and having a chat with you about the same. Please let me know. Thanks!
Reply

Dear Mehaboob,
It is not just LIC’s products, can be with any insurer, advisable to avoid investing in
low-yielding traditional life insurance products (just for tax-saving).
Kindly do not make investment decisions just to save some taxes. Kindly read : Think
beyond taxes when investing!
If are able to invest for your other high priority goals like retirement etc and if you
are still be able to pay EMIs for new home loan comfortably then it should be ne.
But do note that from FY 2017-18, one can claim maximum Rs 2 Lakh only as loss
from house property, even if you hold multiple properties, as given in the above
article.
Kindly read : Income from house property & tax implications!
Reply
Kumar Sudhir says:

Dear Srikanth,
In the tax decleration of my company, there is 2 section i need to declere-
1-LTA Reimbursement(Rs-21375) 2-Medical Reimbursement (Rs-1500)
For medical rembursement, I understood that, I need to submit the medicine bill.
But for LTA Reimbursement, what bill i need to submit?
Is it my monthly bus pass bill or monthly petrol expenses?
Thanks in advance for your suport.
Reply
Kumar Sudhir says:

Sorry to add one more question,
1-I am paying the rent of 8000 per month, but I don’t have the PAN details of my
owner. Can I show this 8000 in HRA without PAN and avail the tax bene t for
2017/18?
2-If I will not declare any HRA, Is there any default amount for which I will get the
tax bene t?
I
Reply

Dear Sudhir,
1 – LTA : To avail of the tax break, the employee has to furnish documentary
evidence of the travel (on a vacation) to the employer.
You may go through below articles :
Article – 1
Article – 2
2 -If the annual rent paid by the employee exceeds Rs. 1 lakh per annum, it is
mandatory for the employee to report PAN of the landlord to the employer.
Some employers do insist for land lord PAN details even if the rent paid is less
than Rs 1 lakh pa.
If you can not submit the rent paid details while declaring the Investments in
your company, you can still claim your HRA when ling your income tax
return, provided you have proofs like rental agreement, rental receipts etc.,
Also, it is advisable to ensure that the rent payments are made through
banking channels as cash transactions may not be considered genuine..
Reply
Uday Shankar says:

For 80DDB, please advise if we need to produce medicine bills to claim tax free. what are
the proofs required apart from Form10I?
Reply

Dear Uday..I believe that bills are not required..
Reply
atulya says:
October 31, 2017 at 8:11 pm
Dear Sreekanth, If husband and wife are co applicants for home loan, to avail tax bene ts, it
seems joint ownership is a condition. If in case the ownership is with either of spouse, how
to get ownership for the other? pl advise.
Reply

Dear Atulya,
Kindly go through below articles, can be useful to you ;
How to add spouse’s name as co-owner of the property?
5 ways of transferring real estate property!
Reply
Aditya says:
October 28, 2017 at 11:31 pm
Hi,
My mother treatment is going on for breast carcinoma in AIIMS.

May I take rebate in section 80DDB ?
And what documents are required for this?
Please help
Reply

October 29, 2017 at 11:47 am
Dear Aditya,
I am not sure if this treatment falls under the speci ed list of treamtments under
80DDB. Is this related to cancer?
You need to obtain ‘Doctor Certi cate’or ‘Prescription’ from a specialist working in a
Govt or Private hospital (treating doctor).
Kindly go through below article, can be useful to you;

Article – 1
We pray for your mother’s speedy recovery and good health!
Reply
gurdeep kaur says:

October 27, 2017 at 10:13 am
what is the transport allowance exemption limit for income tax calculation
Reply

October 28, 2017 at 2:30 pm
Dear Gurdeep,
Up to Rs. 1,600 per month (Rs. 3,200 per month for blind, deaf, dumb and
handicapped employees) is exempt for FY 2017-18.
You may kindly go through this link
Reply
sudharsan sg says:
September 16, 2017 at 7:35 am
Hai
I have taken personal loan in a bank for doing renovation work for my home . is it possible
to claim any tax deduction under head salary loss . Kindly advice
Sudharsan S.G
Reply

September 17, 2017 at 12:25 pm
Dear sudharsan ..I dont think one can get tax bene ts on personal loans…
Reply
sreekrishna says:
Hi,
I have taken homeloan for 32 lakh on 30 mar 2017. Started paying interest (19k around
monthly) till october 2017, from nov 2017 I need to pay emi for 30k monthly. Home loan is
joint with my wife. What are the bene ts I can claim
Reply

September 7, 2017 at 3:36 pm
Dear sreekrishna,
You can claim principal payments in EMIs for FY 2017-18 of up to Rs 1.5 Lakh u/s
80c.
U.s 24, it is up to Rs 2 Lakh.
Kindly read :
Income from house property & tax implications
Joint home loan & Tax implications
Under-construction property & tax implications
Reply
Gurram Mahendra Reddy says:

Hi Reddy garu
I’m a retired PSB of cer retired in July 2017. Got 1497000 under gratuity payment. Bank
deducted TDs for Rs
497000. I understand that government has increased the gratuity exemption limit to
2000000 from this fy . Whether I can claim refund of this TDs while ling returns next year
Reply

Dear Mahendra Ji,
I believe that the Govt has not yet noti ed/amended the ACt (though it has
con rmed the hike). So, we may have to wait for some more time to get a clarity on
this.
Kindly read : Gratuity & Tax implications..
Reply
Nikhil Sheth says:

August 30, 2017 at 5:29 pm
Excellent work by site member. I really appreciate it.
Thanks for all info you provide.
Only single query : is tax limit for all section remain same for 2017-18?
Reply
ranajay says:
August 29, 2017 at 3:43 pm
Hi Mr Reddy just a doubt for home loan interest deduction. From this year, if someone has
2 houses: one self occupied and one rented, what is total deduction I can claim? My
understanding :
1) for self occupied 2 lakhs and

2)for rented out house another 2 lakhs (even if actual interest is more, say 3 lakhs)
OR, is it a combination of self and rented capped at 2 lakhs?

In rst case I can claim 2+2 while in second I can claim only 2 lakhs in all. Please advice. My
employer saying total of self and rented is 2 Lakhs.
Regards
Ranajay
Reply

August 29, 2017 at 3:58 pm
Dear ranajay,
No, the total cap is Rs 2 lakh (both houses put together).
Reply
ranajay says:
August 29, 2017 at 4:27 pm
Thanks Mr. Reddy! Appreciate the prompt response!
Reply
T.J.Rao says:
August 29, 2017 at 8:36 am
Under 80D, if self and spouse are both above 60 and parents not living, is the limit 25000
or 30000?
Reply

August 29, 2017 at 2:49 pm
Dear Mr Rao..The limit is Rs 30,000. Kindly read : Section 80D rules..
Reply
MANISH DUA says:

August 28, 2017 at 2:31 pm
The tax exemption u/s 10(14) on Transport Allowance (TA) in FY 2016-17 was Rs. 1,92,000 as
the TA was Rs. 1600 per month (i.e. 12*1600=192000) but now that the TA has been raised to
Rs. 3200 per month. what would be the exempted limit on TA for FY 2017-18?
Reply

August 28, 2017 at 2:50 pm
Dear Manish,
TA exemption for FY 2017-18 / AY 2018-19 is up to Rs. 1,600 per month (Rs. 3,200 per
month for blind, deaf, dumb and handicapped employees) is exempt.
Kindly visit this link…
Reply
HANUMAN PRASAD says:

August 26, 2017 at 7:04 am
Hi Sreekanth
I booked a under construction at in 2012-13 with a loan. Now in 2017-18, possession has
been offered however, registry is yet to be done. I am govt employee. Kindly let me know
the following:
1. whether i will get bene t of exemption for interest part now on wards and how much?
2. Now i want to sell it for purchasing another at in other city. i will clear my earlier loan
and a new loan would be taken for purchase, can i get the bene t of exemption of interest
that has already been paid against the previous at’s loan as till date nothing has been
claimed.
3. what will be the role of capital gain in this case? if i sell it after registry and purchase
another at.
Reply

August 26, 2017 at 12:01 pm
Dear HANUMAN,
1 – If you get possession in FY 2017-18 and also get it registered now, you can claim
tax bene t of up to Rs 2 Lakh (regular emi + PPI).

Kindly read : Under construction property & tax implications.
2 – If you sell, you are not the owner of the property,hence can not claim tax
bene ts.
3 – Kindly read : How to save capital gains taxes on sale of property?
Reply

August 26, 2017 at 12:13 pm
Hi Sreekanth
Thanks for your reply.
Kindly let me know then in the above case by how much time i have to keep
for availing the beni t of interest excemption.
Secondly if i want ot purchase another by selling it can i add the interest paid
part in the cost of at while calculating the indexed cost.
Please let me know what should i do in case i have to purchase new one by
selling existing at.
Regards
Reply

August 26, 2017 at 3:54 pm
Dear Hanuman,
What I mean is – If one is not a owner of the house, he/she can not
claim tax bene ts on that property.
Also, kindly keep the below points in mind ;
Your Home Loan EMI consists of Principal and Interest component.

The principal component is allowed as deduction under Section 80C.
However, if you sell your residential house within ve years, you may
have to forgo your tax bene ts. The entire amount of deduction
claimed under Section 80C in prior years on the amount of the
principal repayment will be added to the taxable income in the year of
sale of the property. Also, no income tax deductions shall be allowed in
respect of repayments made during the year of sale of the property.
Kindly note that this rollback is applicable only to deduction(s) claimed

under Section 80C. Deductions claimed under Section 24 (b) on
interest payable on your home loan will not be withdrawn.
Yes, you can claim ‘interest on capital borrowed’ as part of cost of

acquisition of property.
Reply

August 26, 2017 at 6:34 pm
thanks again. Kindly clarify me that in your reply that “Yes, you
can claim ‘interest on capital borrowed’ as part of cost of
acquisition of property.” will be applicable in case of short term
gain.
2. what is basis of before 5 year. i have not claimed exemption
under 80 c.
3. if i hold this at for 2 year after possession to qualify for
LTCG, in that case should i go for replacing this at with
another one and what will be effect of already paid interest on
previous at.
4. whether i will get bene t of interest exemption in newer at
if new loan is taken and older one is cleared.
Regards
Reply

August 28, 2017 at 12:27 pm
Dear Hanuman,
As mentioned in my previous comments – Kindly note
that this rollback is applicable only to deduction(s)
claimed under Section 80C. Deductions claimed under
Section 24 (b) on interest payable on your home loan will
not be withdrawn.
If you have not claimed tax bene ts, nothing is rolled
back.
3 – Kindly read this article.
4 – Yes, you can claim tax bene ts on new home loan.
Reply
Ankit Gupta says:

August 23, 2017 at 4:35 pm
Hi Sreekanth,
I understand that time limit for under-construction properties has been increased from 3
years to 5 years from FY 2017-18 for claiming 2 lacs interst deduction. Is it valid for houses
booked from FY2017-18?? OR booked before that also??
E.g. If one booked a house in Apr-2011 then 5 years completion is on 31st Mar 2017. If
constructions is completed before 31-Mar-2017, then can 2 L deduction be claimed in
FY2017-18 OR will the bene t reduce to 30000?
Reply

August 24, 2017 at 5:32 pm
Dear Ankit,
It is applicable for the houses bought before FY 2016-17 itself.
So, cut off date in the above case would be 31-03-17.
Reply
ankit says:
August 24, 2017 at 5:47 pm
Thanks for your reply.
The period of 5 years is from date of booking the house OR from the date of
sanction of loan?
Reply
August 24, 2017 at 5:50 pm

Dear Ankit,
In view of the fact that housing projects often take longer time for
completion, it is proposed that clause (b) of section 24 be amended to
provide that the Deduction under the said provision on account of
Interest paid on Home Loan for acquisition or construction of a self-
occupied house property shall be available if the acquisition or
construction is completed within FIVE years from the end of the
nancial year in which capital was borrowed.
This amendment will take effect from 1st day of April, 2017 and will,
accordingly apply in relation to assessment year 2017-2018 and
subsequent years.
5 years is counted from the end of the relevant nancial year (capital
borrowed / date of loan acquisition).
Reply
Shishir Agrawal says:

August 22, 2017 at 7:20 pm
Dear Sir
Case 1
SAA
I am a salaried individual, have an NPS account, and have invested Rs. 1.5 Lakhs under
Section 80C in LIC , Also i have invested Rs. 50000 in NPS , Am I eligible for additional
deduction under 80CCD 1 for nPS amount
Case 2
PSA
I am an individual business owner, Gross Income 11 Lakhs and have invested Rs. 1.5 L under
Section 80CC in Max Life Insurance and I have invested Rs. 1 lakh in NPS for the year 2016-
17
Do i become eligible for 1.5L +0.50 =2.0 for total deductions or only 1.5 L or 1.5L + 1.0 L
entirely due to self owner
What will be the case for deductions in current year 2017-18 also?
Thank you in advance
Reply

August 24, 2017 at 5:17 pm
Dear Shishir,
1 – Yes
2 – Rs 2 Lakh. Additional Rs 50k can be claimed.
Reply
Pritam Parab says:

August 20, 2017 at 2:00 pm
Hi Sir ,
Day before yesterday I got Life insurance policy amount into my salary account . However, I
don’t know if they have deducted any tds on the same or not .
Credit happened approx. 2lacks. My question is while ling the return for this F.y will I have
to pay any tax on the same or not .
Or how could I know whether they have deducted any tds on the same .
Reply

August 21, 2017 at 2:55 pm
Dear Pritam,
If its maturity proceeds then can be a tax-free amount. Kindly go through this
article..
You may kindly check your Form 26AS to know if any TDS has been deducted by
your insurer..
Reply
Jeetendra says:
August 16, 2017 at 12:55 pm
Hi Sreekanth,
I have one at which I currently stay in and for which I have already cleared my loans. I am
planning to buy another Flat and plan to move to that house by next June (Jun’18). After that
I will rent out my existing at. I have following questions:
– Will the new at I buy considered as Self – Occupied?
– Can I claim tax bene t of Rs 2Lakhs on this?
– If I do not let out my rst at should I still pay income tax on the notional income
Thank you for help
Reply

August 16, 2017 at 1:27 pm
Dear Jeetendra,
1 – Yes, you can consider the new Flat as Self occupied property after taking the
possession (june’18).
2 – Yes, but the maximum limit is Rs 2 Lakh (all houses put together).
3 – Yes, you need to calculate ‘income from house properties’ and still disclose the
details in your ITR. (You may consider it as ‘let out property kept vacant’.)
Kindly read :
Income from house property & Tax implications
Self occupied property & tax implications
Under-construction property & tax implications
Reply
Jeetendra says:
August 16, 2017 at 1:59 pm
Thank you Sreekanth for the quick response. Few more questions
– How do we calculate the notional income without actually letting out the
property. Is there a guidance somewhere. Is it based on cost of property?
– Just recon rmation that – if I do not actually rent the rst property then I
have to pay Wealth tax on it (although I show the notional rent as income)
Reply

August 17, 2017 at 11:05 am
Dear Jeetendra,
If you keep it vacant for the whole year then the rental income can be
shown as NIL.
Kindly note that wealth tax has been abolished in India.
Reply
Avinash Manohar Muthe says:

August 14, 2017 at 2:01 pm
Hi Sreekanth, I am a parent of a special kid with 90% permanent disability (severe mental
retardation). Certe cate from District Civil Sergeon which mentions the said disability is
available with us. Can I submit the copy of the same for claiming the deduction under
80DD? Is it necessary to give the declaration in new Form no. 10-IA every year?
Reply

August 14, 2017 at 3:41 pm
Dear Avinash,
I think you need to submit the form 10 IA every year along with the ITR.
But for section DDB, I have read somewhere on the web that Form 10I is not
mandatory.
Reply
Kali says:
August 14, 2017 at 1:12 pm
Hi Sreekanth,
Thanks for your valuable information.
My query is regarding HRA and home loan.
I have a house in Chennai wherein my parents staying, paying 15k EMI as home loan.
Purchased another apartment in Bangalore, same has been rented out for 10K/month and
paying 30kEMI as home loan.
I stay in rented house in Bangalore which is 3 KM away from the newly purchased one and
paying 22K/month as a rent.
How to claim both HRA and house loan 80C and 24B(complete 2lakhs) amount?
Should i show both the properties as rented one, so that , we need to show the rented
income?
Thanks in advance.
Reply

August 14, 2017 at 3:36 pm
Dear Kali,
Yes, you can claim HRA and also show both the owned properties as Let-out ones,
provided you have rental agreement done even with parents and issue rent receipts
to them, and get the rent amount in your account.
Reply
Hemant says:
August 12, 2017 at 12:09 am
If housing loan has been taken during f. Y. 2017-19, exemption u/s 80ee can be taken or
not.. Pls clarify
Reply
Hemant says:
August 12, 2017 at 12:11 am
It is f.y. 2017-18
Reply

August 12, 2017 at 12:05 pm
Dear Hemant ..Yes, tax deduction u/s 80EE can be availed..
Reply
Harinath says:
August 3, 2017 at 7:24 pm
Hi Sreekanth,
Pls let me know , GST is applicable on CAR LEASE or not ,
Although car lease amount , driver reimbursement and patrol reimbursement is part
Employee CTC (Salary)
i am little bit confuse about that so pls help me.
Reply

August 4, 2017 at 12:57 pm
Dear Harinath,
It is applicable..but looks like some confusion on this topic exists..
Kindly go through this forum thread..
Reply
prem says:
I am a govt employee and received HRA on basic salary as 10% but my graoss salary is
basic+DA 146 % of basic + 10% of HRA
Kya mai tax duduction ke tahat house rent alowanace ka exe[tion le sakta hu if I paid for
rent as 2500 per month for whole 12 month
Reply

August 3, 2017 at 11:46 am
Dear Prem,
Kindly go through this HRA calculator..
Reply
Sanjay Malla says:

August 1, 2017 at 11:49 am
Please tell me whether rebate of Rs. 5000/- below income of ve lacs still exists for the
current nancial year or not
Reply

August 3, 2017 at 11:44 am
Dear Sanjay..It is up to Rs 2500 for FY 2017-18. Kindly go through the points given
under ‘Rebate under Section 87A’..
Reply
Sanjay Malla says:

August 3, 2017 at 12:19 pm
Thanks for your guidance please
Reply
Harinath says:
Yes 2500/- you can avail till 5lac
Reply
KUSHAL says:
July 30, 2017 at 12:49 am
I AM GOVT EMPLOYEE AND BLESS WITH 02 CHILD.
CAN I EXEMPTED UNDER SALARY EMPLOYEE —?
HOW MUCH —?
WHICH UNDER SECTION—?
Reply

July 31, 2017 at 1:02 pm
Dear KUSHAL ..Unable to understand your query..kindly rephrase it..
Reply
smita kariwadekar says:

July 30, 2017 at 12:35 am
hi..thanks for the information..my query is regarding exemption of home loan interest
under section 80EE..can it be claimed if the property is under construction and all other
conditions are being met? plz let me know..thanks in advance..
Reply

July 31, 2017 at 1:01 pm
Dear Smita .. Yes, can be claimed on an Under-construction property too!
Reply
Mahesh D says:
July 26, 2017 at 8:30 pm
Hi Sreekanth ,
I took home loan for under construction property in Navi Mumbai which completion
certi cate can be avail after December 2019 or later. And currently I am residing in
Dombivli on rent. Both location has different municipal corporation jurisdiction.
My EMI has started and banker said they can provide me provisional certi cate of home for
tax declaration. Hence just want to know how.
1. I can declare tax rebate on EMI paid as this is under construction property. My company
nance dept said that they may declare with banker provisional certi cate. But IT team
may or may not accept it and it lead to scrutinize.
2. Can I declare HRA same time along with home loan EMI?
Regards,
Mahesh D
Reply

July 27, 2017 at 11:39 am
Dear Mahesh,
1 – Kindly read : Under-Construction property & tax implications..
2 – Till you get the possession of your property, you can not claim tax bene ts. Once
you get the possession, but if do not self-occupy it then you may still claim both
HRA and tax bene ts on home loan..
Reply
Ram Veerubhotla says:

July 20, 2017 at 2:05 am
Hi Sreekanth,
This question is regarding 80 E – rst time home buyer deduction of extra 50,000 INR..
I bought an independent house registered on April 12 th 2016… and loan sanctioned on
April 2nd 2016….I have been told that I cannot avail this deduction as it is rented and 80 E is
only for self occupied properties…can u pls con rm
Reply

July 20, 2017 at 11:47 am
Dear Ram,
This Section does not specify if a house should be self occupied or let-out to claim
the deduction.
The house should be a residential property and it is your rst property..
I believe you can claim tax deduction u/s 80ee.
Reply

July 21, 2017 at 3:58 pm
Thanks Sreekanth…Really appreciate your quick response.
I beleive I need to le revised Tax returns as I already led it… Wanted to
check if you a services of Tax planning and Financial planning. Would be keen
to enroll and leverage.
Thanks
Ram
97019010**
Reply

July 22, 2017 at 1:18 pm
Dear Ram ..I have recently stopped offering one to one Financial
planning services.
You may post queries here or at our Forum section ..
Reply

July 24, 2017 at 1:57 pm
Thanks Sreekanth… I have been following ur blog and its very
nice..would really be grateful if u start of ur Tax services again..
I would like to enroll…
My query for today is as an Individual tax payer if I start
Ecommerce bussiness and make loss oout of it ….say i invested
2 lakhs for buying material and loss of 1 Lakh is there can I get
this 1 lakh deducted from 3 lakhs (assumption: tax which I am
paying this year)…
Reply

July 25, 2017 at 10:52 am
Dear Ram,
Thank you for following my blog posts!
You need to calculate your Pro t & Loss statement and
calculate your tax liability.
Reply
L.N. Sachdeva says:

July 19, 2017 at 3:29 pm
Dear Sreekanth,
In FY 2016-17, I with my spouse took a housing loan for our rst apartment which is under
construction. The apartment is in my spouse’s name. I ful l all other conditions of Sec.
80EE such as loan amount, cost of at etc. Can I claim rebate admissible in AY 2017-18
under Sec. 80EE when:
– house is under construction;
– the apartment is in my spouse’s name;
– we can’t claim any rebate on interst under Sec. 24 since construction is not complete.
I may mention here that one blogger writes that rebate can be claimed since there is no
mention of completion/ occupation or resident/non-resident under Sec.80EE.
Please reply early. Regards.
Reply

July 20, 2017 at 11:44 am
Dear Mr Sachdeva,
Yes, you can claim tax rebate u/s 80EE even for an under-construction property.
Reply
L.N. Sachdeva says:

July 20, 2017 at 11:59 am
That’s good news…. Thanks and regards for prompt response.
Reply
ramprasad says:
July 19, 2017 at 12:00 pm
sir,
1.what is functional pay. Is it exempted from IT. If so what is the limit.
2. Our employer is showing Rs.10000/- towards conveyance every month in the salary
subject to submission of petrol/diesel bills. Is it necessary to submit bills?
3.Can some amount can be shown towards food coupons in the salary? if so what is the
limit and what its effects on employer
Reply

July 19, 2017 at 3:07 pm
Dear ramprasad,
1 – I am unable to understand your query…
2 – Yes.
Reply
Ajay Sharma says:

July 18, 2017 at 5:06 pm
Hi
Maximum amount that can be invested into 80C to 80TTA.
Regards
Aj
Reply
P.A.Abraham says:
July 12, 2017 at 8:16 pm
Sir,
For Central Govt Employees there is a CGHS for medical treatment by giving monthly
contribution deducted from their salary. But for Retired person an additional option to pay
a lumpsum amount equal to 10-year contribution for a lifelong treatment facility through
CGHS. I have opted the same and paid Rs 27030 in FY 2016-17. Can I claim this amount
deduction under 80D or any other head?
Reply

July 13, 2017 at 12:01 pm
Dear Mr Abraham.. Any contribution to Central Government Health Scheme (CGHS)
can be claimed under section 80D (subject to above mentioned ceiling limits).
Reply
P.A.Abraham says:
July 13, 2017 at 1:10 pm
Thank you, Mr Sreekanth, for this wonderful service and prompt reply.
Reply
rohit says:
July 11, 2017 at 4:27 pm
Sir,
I have come to know about rebate of Children education allowance of Rs.100 per child but
My Employer (Govt of ce) has not given me tax rebate u/s 10(14)(ii) in the last 3 years even
though I have been giving the fee slips which I am claiming for Rs.1.50 lakhs as in total
deductions. Fee paid by me every year is aprox 1.80 lakhs. Kindly tell since when is the
rebate of Rs.100 being allowed (FY) so that I can (if possible) claim.
So is there a way to claim the rebate of Rs.100 per child i.e. Rs.2400 as exemption for this
year as well as in the last few years as there is no column to give this information in ITR-I
form?
Reply

July 12, 2017 at 2:36 pm
Dear Rohit,
I believe that if your employer has not considered this allowance for TDS
calculation, then you can not claim while ling your ITR.
Reply
S Ram says:
July 7, 2017 at 3:49 pm
Sir, I am a govt. staff. I bought 2 fully constructed houses on bank loan. 1 house in the year
2014 and 2nd house in 2016. For 1st house I am claiming as “Self Occupied”. For the 2nd
house, I wish to claim “deduction of interest on housing loan under Section 24B”.
My question is, which IT Return Form should I use to ll my tax return for the FY 2017-18?
Reply

July 8, 2017 at 12:01 pm
Dear RAM…For FY 2017-18 ie AY 2018-19, the relevant forms will be released during
April 2018. so, it is too early to discuss on this, as sometimes Form numbers can be
changed/renamed.
Reply
Mohit Garg says:

July 6, 2017 at 11:57 pm
i HAVE RECENTLY GOT RETIRED AND GOT 700000 AS GRATUITY AND 30000 FOR LEAVE
ENCASEMENT. Where should i show this tax exempted income in ITR 1
Reply

July 8, 2017 at 11:49 am
Dear Mohit ji..Kindly go through below articles, can be useful to you…
Gratuity & tax implications
Leave Encashment & tax implications
Reply
Chandrakant says:
June 30, 2017 at 6:12 pm
Hello,
I got from the above discussions that whether it’s a rst or second home and either it’s a
self occupied or let-out property, the max tax exemption would be 2 Lakhs. What about tax
exemption under 80C on principal paid? will it be applicable for rst home loan only or we
can get tax bene t for the principal amounts paid for both the homes?
Can you please explain?
Reply

July 1, 2017 at 2:59 pm
Dear Chandrakant ..You can claim principal repayments on multiple homes up to Rs
1.5 Lakh under Section 80C.
Reply
Raghvi says:
June 29, 2017 at 10:55 am
Dear Sir,
I wish to know that can i have FDS for more than 4 lakh annually? Will i have to pay any tds
for it if i ll 15G form. Actually, i am a housewife and i dont le ITR. Is there any problem if i
do so.
thanks & regards
Raghvi
Reply

June 30, 2017 at 2:46 pm
Dear Raghvi ,
Kindly go through below articles, can be useful to you :
Taxes on FDs/RDs
TDS & Mis-conceptions
When to submit Form 15G/H to avoid TDS?
Reply
Kiran K says:
June 28, 2017 at 7:11 pm
I have spent 60000 for my wife maternity charges, under which clause I can claim Tax
relief
Reply

June 30, 2017 at 2:42 pm
Dear Kiran..If you get medical allowance then you can claim up to Rs 15,000 u/s 10.
Kindly read : Section 80D Medical insurance premium & Section 10 – Medical
allowance
Reply
GANESAN says:
June 28, 2017 at 7:10 pm
VERY NICE ARTICLES . CONTINUE THE GOOD JOB- GANESAN
Reply
Jivan says:
June 26, 2017 at 4:46 am
Dear Shreekanth,
very informative blog.
I am a NRI and need to ll ITR2.

I have a house which was let out for 7 months @20k/m to a tenant who left and a new
tenant came in from whom I received the rent of 21k/m for 3 months till 31st march 2017.
The house was let out totally for 10 months to 2 separate tenants at 2 different rents as
above. my query is
1) how do I show this in ITR2? Should I show it as total of 20×7+21×3=203K and mention the
2 tenant names ?
2) or I need to ll both tenancies as separate entries?
3) If it needs to be shown as separate entries do I need to ll the same property entry twice
with respective tenants info?
Looking forward to your advice on same.
Thanks,
Jivan
Reply

June 27, 2017 at 2:42 pm
Dear Jivan,
I believe that there is no need to disclose it as separate entities.
You may mention it as Total rental income and do the calculation under the head
‘income from house property’.
Reply
Vinod says:
June 20, 2017 at 5:23 pm
Thanks for the informative article and answering queries!
My question is regarding the exemption limit on home loan interest for Self occupied and
let-out properties.
Is the combined exemption limit 2 lakshs? Or there is a limit of 2 lakhs for self occupied
and let out seperatly?
Can you quote the nance bill section under which this amendment came for FY 2017-18,
so that I can mention that to our payroll dept.
Thanks in advance.
Vinod.
Reply

June 23, 2017 at 11:32 am
Dear Vinod,
Its the combined limit and not a separate one.
Kindly read @ Financial Bill 2017 (Page no 33).
Reply
PSJ says:
June 16, 2017 at 11:44 am
my wife had a medical treatment, shall I claim the tax for the cost of medical treatment?
Reply

June 16, 2017 at 2:42 pm
Dear PSJ..If you have medical allowance as part of your salary, you can claim it.
Kindly read : Medical allowance & Medical insurance premium
Reply
shekar machukuri says:

June 14, 2017 at 4:57 pm
Sir how much TDS deduction from my salary my salary is 12000
Reply

June 15, 2017 at 12:07 pm
Dear shekar ..There wont be any TDS deduction as your expected total salary is less
than basic exemption limit ie Rs 2.5 Lakh pa.
Reply
Mangesh says:
June 8, 2017 at 7:15 am
Hi,
Below are my home loan deduction for this fy2017-18,
Principal component Rs. 80,230.37

Interest Component Rs. 2,58,206.56
Under Section 24, i can declare Rs 2,00,000 lakh only.
Is it possible if i declare my Principal component Rs 80,230.37 plus remaining interest

component Rs 58,206.56 under Section 80c?
If above is not possible where can i declare my remaining interest component?
I took home loan in 2015 of 29 Lakhs for house value above 50 Lakhs.
Can i declare Rs 50k under section 80EE?
Reply

June 9, 2017 at 12:24 pm
Dear Mangesh,
Is this a self-occupied property?
No, you can not club & claim the balance amount (interest part) along with principal
amount u/s 80c.
Section 80EE was introduced effective 2013-14 and was available for 2 years, FY
2013-14 and FY 2014-15 only .The deduction allowed earlier was limited to maximum
Rs 1 lakh in total and was available for only 2 nancial years.
However, this section has been reintroduced effective FY 2016-17 (assessment year
2017-18).Now the deduction is allowed up to Rs 50,000 per year starting from FY
2016-17 and subsequent years until the loan is repaid.
Reply
Mangesh says:
June 9, 2017 at 12:45 pm
Yes,its self occupied property.
Is there any section where i can declare my remaining interest component?
So i can declare 50k for fy2017-18 in 80EE section?
Reply

June 9, 2017 at 3:06 pm
Dear Mangesh,
No other section is available.
If your loan is sanction in FY 2014-15, I am not sure if you can claim tax
deduction u/s 80EE.
Reply
sachin says:
June 5, 2017 at 1:38 pm
hello Srikant, I have few issues with my tax components, want to discuss so can you plz
share your number or email id so will share.
Reply

June 5, 2017 at 4:19 pm
Dear sachin,
I prefer resolving the queries through blog comments or through Forum.
Reply
Arun Kumar Tak says:

June 1, 2017 at 1:04 pm
Dear Sir,
Under Section 80GG: The Tax Deduction amount under 80GG is Rs 60,000 per annum.
Section 80GG is applicable for all those individuals who do not own a residential house &
do not receive HRA (House Rent Allowance).
Sir I’m working in PSU NTPC limited and I’m staying in company provided third party
leased accommodation, leased accommodation is taken in my name by my company and
rent is provided to land lord by NEFT by my company in full. But House Rent Perk and HRR
is deducting from my salary approximately deductions 10000 Rs PM.
Is my income is deductible under section 80 GG.
Thanks & regards
Arun Kumar Tak
Reply

June 2, 2017 at 2:39 pm
Dear Arun ..As your company is paying the expense, I dont think you can claim it u/s
80GG.
Reply
K Chaithanya says:
June 1, 2017 at 9:56 am
Dear Srikanth Reddy
I am working for a pvt co and receivingRs 7.00 lakes as CTC which includes Rs0.51 lakes
“Employers contribution” towards EPF and Gratuty. While Iam contributing matching
amount from my salary.
Can I deduct Rs0.51 lakes salary from CTC as I am not receiving the same and claim Rs0.51
my contribution towards EPF under Sec 80c.
Kindly clarify and guide me
K Chaithanya
D/o ksudhakararao Rao
Reply

June 2, 2017 at 2:37 pm
Dear Chaithanya ..You can claim your contribution to EPF scheme u/s 80c. But you
cannot claim tax deduction on the employers contribution under section 80C.
Reply
Preetam says:
May 24, 2017 at 7:39 pm
Hi Sreekanth,
Thank you for the informative article.
Have doubt on whether i can claim the interest as well HRA in the below case.
Have taken a housing loan on my rst home which is far off my of ce and live with my
parents which is near as compared to my rst home. The Housing Loan was
taken(sanctioned) in May ’14. As of now am paying only interest on the loan disbursed. EMI
will start once possession is given which should be hopefully by Jul’17.
Given the scenario
Can i claim the interest for the given nancial and for the previous nancial years. if yes
under which section?
Can i claim HRA as rent being paid to my Father

Can i apply for Pradhan Mantri Awwas Yojana for the given loan
Thanks again,
Preetam
Reply

May 26, 2017 at 12:13 pm
Dear Preetam,
Yes, you can claim both HRA and Tax deduction on home loan.
Kindly read :
Under construction property & tax implications
Income from house property & tax implications
IT exemptions list for FY 2017-18
You may check with your banker on PMAY eligibility rules.
Reply
SRINIVAS says:
May 20, 2017 at 12:53 pm
Hi Could your please clarify SEC 24 Tax bene t on loan repayment of second house will be
restricted to Rs 2 lakh per annum only. i own only one house which bought using home
loan and rented out due its far off from my of ce and i am staying on rent near to my
of ce. Even if its my rst and only house still tax bene t on home loan interest will be
restricted to 2 lakh only wef fy 17-18. Thanks and regards
Reply

May 22, 2017 at 11:38 am
Dear SRINIVAS ..Yes, it would be up to Rs 2 Lakh only.
Reply
Yepuri Sujith Kumar says:

May 18, 2017 at 4:38 pm
Hello Mr Reddy,
I have doubt on House Loan repayment.
In 80C only House Loan principal is mentioned. How about the interest, cant I claim on
that too ?
Is there any other tax savings tips to help me please
Reply

May 19, 2017 at 12:10 pm
Dear Sujith ..The interest payments can be claimed u/s 24, part of calculation of
‘income from house property’.
Kindly read : Income from house property & tax implications..
Reply
Yepuri Sujith Kumar says:

May 19, 2017 at 1:42 pm
Thanks Mate.
Reply
Parthasarathi says:
May 7, 2017 at 11:47 pm
Thanks for the detailed article. I had a question on section 80E :
What is the de nition of “Education loan” under this section ? I plan to take a “loan against
mortgage property” from HDFC bank to nance my son’s higher studies abroad. Would this
qualify as “Education loan” and make the interest eligible for tax deduction under section
80E ?
Reply

May 8, 2017 at 2:44 pm
Dear Parthasarathi ..No, it does not qualify under Edu loan.
Reply
Manish Chhabra says:

May 5, 2017 at 1:14 pm
Is Deductions under 80(G) in addition to 1.5 Lakhs under 80(C).
Also, tell me more about 80(G) in detail
Reply

May 5, 2017 at 3:34 pm
Dear Manish ..Yes, it is over and above 80c. You may just google about it..
Reply
Shripad says:
May 3, 2017 at 4:07 pm
Hi.
I have Flat in Talegaon ,(Outside of Pune).2 month back I change job from Talegaon to
shirawal(Near to Satara).so for easy transportation I shifted to place from where I have
transport facility. New place is my father’s 2nd home and I am paying rent of 500 / month
to him. My question is
1) Can I claim HRA ?
2) If yes , can I provide pan card of father as land lord?
Reply

May 4, 2017 at 12:31 pm
Dear Shripad,
1 – Yes (do maintain rental agreement and pay the amount via cheque / online
mode).
2 – Yes.
Reply
shripad says:
May 4, 2017 at 12:54 pm
Thanks for information Sreekanth.
it means I can claim HRA as well as Income / Loss from house Property +
Housing loan principle (Unde 80 C ) right?
With regards,
Shripad
Reply

May 4, 2017 at 1:03 pm
Yes, you can claim both..
Reply
Kapil Bajaj says:

May 3, 2017 at 3:08 pm
Hello Sir,
I have invested in following mutual funds through SIP in 2017 for 10 years of time horizon
or can be extended up to 15 or 20 years as per priorities & responsibilities.
I am 30 years old now.
Goal 1:- Time Horizon 10 Years, Total Corpus Target 20-25 Lacs @ 20% CAGR consolidated
for 6 mutual funds.
Goal 2 :- Time Horizon 20 Years, Total Corpus Target 1.50 Cr to 2.00 Cr @ 20% CAGR
consolidated for 6 mutual funds.
1. DSP Black Rock Tax Saver Fund-Direct Plan-Growth Option (SIP 1000/-p.m)-ELSS Tax
Planning- First SIP Date 07.05.2017.
2. Kotak Select Focus Fund Direct Plan-Growth Option (SIP 500/-p.m)-Large Cap-First SIP
Date 10.05.2017.
3. Kotak Tax Saver -Direct Plan-Growth Option (SIP 500/-p.m)-ELSS Tax Planning-First
SIP Date 10.05.2017.
4. Birla Sun Life Tax Relief 96-Direct Plan-Growth Option (SIP 1000/-p.m)-ELSS Tax
Planning-First SIP 01.05.2017
5. Reliance Small Cap-Direct Plan-Growth Option (SIP 1000/-p.m)-Small Cap- First SIP
Date 10.06.2017.
6. Mirae Assent Emerging Blue Chip Fund-Direct Plan-Growth Option (SIP 1000/-p.m)-
Mid Cap-First SIP Date 01.06.2017
Q1. How would you rate this portfolio?
Q2. Is this goal achievable? I can increase existing investment by 20% annually?
Q3. Please suggest few more funds for my brother separate investments for same time
period and same objective and same investment amount he is 28 years old?
Q4. How we can achieve 20 years target in 15 years?
Reply

May 4, 2017 at 12:29 pm
Dear Kapil,
As you have very long-term goals, you may allocate slightly higher amounts to
mid/small cap funds.
Is tax saving one of your investment objectives?
Kindly go through below articles and you may revert to me with your analysis ;
Retirement goal planing & calculator
Kid’s education goal planning.
MF portfolio overlap analysis tools.
How to pick right mutual fund Schemes?
Best Equity Mutual funds.
Reply
Kapil Bajaj says:

May 6, 2017 at 5:55 pm
Thanks for your suggestions!!
1. I have few more queries.

1.1. How much percentage of overlapping is acceptable?
1.2 If we would be having portfolio in Large Cap/Mid Cap/Small Cap funds so
consolidated overlapping can be reduced?
2. Yes you are right Tax saving is other objective of this investment with long
term capital gains “Higher Returns with Lower and Average Risk” have
considered.
3. As you have suggested I can include slightly higher amounts in Mid Cap
and Small Cap Funds?
So I have shortlisted few funds, could you please suggest any ve mutual
funds? I want to invest 1000/- in each for my younger brother.
I have analysed their overlapping in same categories of mutual funds?
And I have kept the view of Standard Deviation, Alpha, and Beta & Sharpe
Ratio as well.
1. Mid Cap Funds
1.1 Birla Sun Life Pure Value Fund
1.2 UTI Mid Cap Fund
2. Small Cap Funds

2.1 Birla Sun Life Small & Mid Cap
2.2 Franklin India Smaller Companies Funds
3. Tax Saver
3.1 Mirae Asset Tax Saver Fund
3.2 Axis Long Term Equity Fund
3.3 Reliance Tax Saver Fund
Reply

May 7, 2017 at 11:45 am
Dear Kapil,
1 – Overlap : There is no thumb rule, but any high overlap say 60% is
not bene cial to have both the funds in the portfolio.
2 – Mid cap category : UTI mid cap is ne. There are better funds than
Birla pure value fund. Ex : Mirae emerging bluechip or HDFC mid-cap
opportunities fund.
Small cap : Birla Small & mid cap, may not be a great choice.
ELSS : kindly read – Best ELSS Tax saving mutual funds.
Reply
Kapil Bajaj says:

May 8, 2017 at 10:14 pm
Is ULIP a good option to invest?
Reply

May 10, 2017 at 3:36 pm
Dear Kapil ..May I know your investment objectives,
nancial goals and time-frame??
Reply
A Panchal says:
May 2, 2017 at 3:39 pm
I really appreciate you r hard efforts…very descriptive information for AAM admi.
Reply
Prakash P says:
May 2, 2017 at 12:06 pm
Hi,
I want to clear information form tax credit 87/a

Taxable gross 350000 mins
total tax amount is 5000 and credit in 2500 balance tax amount is 2500
but my taxable gross is 525000

total tax amount 17500, that case credit applicable or not
Reply
Suganthi says:
April 27, 2017 at 4:41 pm
Hi Sreekanth,
I was under the impression that tax exemption is only 1.5 L totally. Can i also get exempted
more than 1.5 L other than 80c isn’t? Thank you for your time.
Reply
Rajiv says:
April 24, 2017 at 3:47 pm
Hi Sreekanth
I am paying LIC Premiums of my parents. Can I claim premium paid for my parent? If yes,
then under which section?
Thanks
Reply

April 24, 2017 at 5:16 pm
Dear Rajiv .. Life Insurance premium paid on parents is not eligible u/s 80-C.
Reply
Rajiv says:
April 24, 2017 at 5:21 pm
Thanks Sreekanth, Even though my parents are dependents, still I am not
eligible for claim. Please suggest.
Reply
Prem Chandran Nambiar says:

April 20, 2017 at 4:06 pm
Sir
I have a at co owned by my wife bought thru bank loan (wife Co applicant). Rent received
by wife thru bank which I have been adding with my income for tax purpose. Iam a govt
employee. Wife housewife and no other income except some amount of FD interest which
waved off thru. 15,G. Can my wife (pan card holder,) le IT return separately from this fy so
that I have some tax relief.
Reply

April 20, 2017 at 4:29 pm
Dear Prem,
If the property is jointly owned one, both of you has to declare the rental income.
Read : Do I need to le ITR?
Reply
meiyarasan says:
April 19, 2017 at 5:47 pm
hi,
i have paid my fathers medical LIC policy premium, so could i claim for tax exemption.
fathers age 59 (he have other source of income but it less then 1 lac per year)
thanks !
Mei
Reply

April 19, 2017 at 6:41 pm
Dear meiyarasan ..Is it life insurance or health insurance premium?

(Section 80c or 80d)
Reply
meiyarasan says:
April 19, 2017 at 6:43 pm
health insurance
Reply

April 19, 2017 at 6:49 pm
Dear meiyarasan ..Yes, you can claim tax deduction u/s 80D.
Read : Section 80D tax bene t..
Reply
meiyarasan says:
April 19, 2017 at 6:51 pm
thanks a lot sreekanth
Reply
Rohit says:
April 18, 2017 at 1:54 pm
Hi Sreekanth, I am staying in rented accommodation near to my of ce in Gurgaon. I am
planning to purchase a at with home loan in outer Gurgaon (20 km away from my of ce)
and put that at on rent. If I declare rented income as income from other source, then can
I take bene t of both HRA and home loan interest?
Reply

April 18, 2017 at 3:43 pm
Dear Rohit,
You can claim both HRA and tax bene ts on home loan, however you need to
declare the rental income under ‘income from house property’ and not under the
head ‘income from other sources’.
Reply
Rohit says:
April 20, 2017 at 11:37 pm
Thanks Sreekanth,
If my wife is co-applicant in home loan and our rented property is registered
in joint name, Can each of us show 50% of rental income to save income tax.
For example if annual rental income is 2L, then we have to show 1L each or it
will be in proportionate to amount of share in home loan?
Thanks
Reply

April 21, 2017 at 2:54 pm
Dear Rohit ..Yes, you can declare Rs 1 Lakh each (if there is no speci c
mention of ownership shares in the Sale deed).
Reply
sushil maurya says:

April 18, 2017 at 10:28 am
i paid premium of Life insurance policy which is my wife’s name . from my salary, can i
elegible to take a beni ts u/c 80 c. my wife is a housewife and no source of income.
Reply

April 18, 2017 at 12:08 pm
Dear Sushil ..Insurance premium paid for yourself, your spouse or your children is
allowed as deduction under section 80C
Reply
Abhisek BAKSHI says:

April 17, 2017 at 8:59 pm
Hi,
I have a self occupied home on which I have taken a joint loan with my wife. we claim 2L
each as tax bene t last anacial year. We are planning to buy another house with joint loan
for renting it out. with restpect to new tax rules how much we can claim tax bene t? is it
2L each for self occupied and the 2 lakh each for rent out property or , it is 2 lakh each for
self occupied and 2 lakh overall for ( split between me and my wife) for rented out
property?
Reply

April 18, 2017 at 11:59 am
Dear Abhisek,
Both of you can claim max Rs 2 Lakh (on both properties) each.
Reply
Neha says:
April 17, 2017 at 4:56 pm
Hi Srikanth,
My question is regarding HRA.

From this year onwards any kind of veri cation is going to happen? We have heard lot of
news about it.
The place where I stay is rented one which belongs to one of my uncle.Is that totally ne if
I provide PAN of my uncle while submitting HRA as he doesn’t have any other source of
income.
Also let me know what can be done in the scenario if an employee is paying rent for
himself/herself and paying the rent for his/ her parents in other city?
Regards,
Neha Varshney
Reply

April 18, 2017 at 11:57 am
Dear Neha,
Yes, there has been few Cases where IT dept has disagreed to accept claims related
to Rent receipts (HRA).
It is always advisable to make only genuine claims wrt to tax deductions..
Paying rent for himself?
Kindly get Rental agreement done with your Uncle/Parents. You have to make sure
that you pay the rent to their respective bank account(s) only.
Reply
RAKESH GUPTA says:

April 17, 2017 at 4:20 pm
I have taken home loan for current nancial year with my wife as co-applicant. Will both of
us will get exemption on payment of interest upto Rs.2 lakhs each from this nancial year
onwards.
Reply

April 18, 2017 at 11:54 am
Dear RAKESH ..Yes..provided both of you are Co-owners of the property.
Reply
Pravin Rajendran says:

April 17, 2017 at 10:25 am
Is the 2 lakh limit under Section 24 only applicable from the second home onwards?
Suppose i buy a rst home, and rent it out. can i take unlimited bene t on interest
expense?
Reply

April 17, 2017 at 5:45 pm
Dear Pravin ..No, in that case too, the loss will be limited to Rs 2 Lakh only and the
balance can be carried forward..
Reply
Uteesh Dhar says:

April 16, 2017 at 7:13 pm
Educative, Informative. Great Keep it up. I have bookmarked the article for future use
Reply

April 17, 2017 at 5:43 pm
Thank you dear Uteesh.
Keep visiting ReLakhs and kindly share the article(s) with your friends!
Reply
K says:
April 13, 2017 at 12:36 pm
I have PF which is amounting to 1.5L apart from this can I still claim 1.5L in NPS : under
80CCC – Pension Fund Contribution?
Reply

April 13, 2017 at 3:37 pm
Dear K ..No, the aggregate amount under 80C+80CCC is Rs 1.5 Lakh only.
Reply
K says:
April 14, 2017 at 12:04 am
Ooh.. ok.. Thank you very much for the clari cation
Reply
Thirunavukkarasu says:
April 19, 2017 at 11:58 am
I believe we can claim upto Rs. 50000 on top of 1.5L through 80CCC (NPS)
Reply
Thirunavukkarasu says:
April 19, 2017 at 12:03 pm
Please ignore my previous post.
80CCD (NPS) is allowed Rs.50000 on top of 1.5L (80C+80CCC)
Reply
Amrit Pati says:

April 11, 2017 at 7:43 pm
Dear Sreekanth,
I have a row item of 10k showing in my salary structure of CTC, which goes as a premium
to a Company Medical Insurance. This amount does not show in my Income under salary
head in Form 16. Can I still use this 10k for showing a deduction under 80D?
Reply

April 12, 2017 at 5:56 pm
Dear Amrit,
If Rs 10k is a deduction from your salary, you can claim it as a tax deduction u/s
80D.
Reply
indrajeet yadav says:

April 8, 2017 at 5:01 pm
Dear Srikanth,
Please reply for my few queries if possible
1 ; This FY year i have expand more than one lakh for my fathers critcle dease, then how
much amount i can take rebate?
2; I have taken rebate in last two years 12 & 19 thousands respectively in 8 years now this
year i want to take 47k rebate refund ?
3;After how much years we can sell out at to avoid extra taxes.
Thanks
Reply

April 10, 2017 at 2:18 pm
Dear indrajeet,
1 – Do you receive medical allowance in your Salary (if salaried)?
Kindly go through Section 80DDB and its eligibility criteria..
2 – I dint get your point/query..??
3 – What do you mean by extra taxes?
Kindly read: Long term capital gain taxes on sale of property
Reply

April 11, 2017 at 11:25 am
Dear Sir,
As per your query
1- I am getting 60k annual medical allowance and claimed 60k
2- I am saying about as i am working from last 8 years but only claimed last 2
years 19k and 12 k in LTA.
is i am able to take lta bene t this year also because i heard LTA provided in 4
years block 2 times till 48000k.Even it can be carry forward if not claimed in
any block(4year).
3- extra taxes means long term , short term gains or any other taxes if home
loan and rebate taken in past.
thanks
Reply

April 11, 2017 at 12:24 pm
Dear Indrajeet,
1 – One may avail for reduction in the taxable income for a maximum
of or up to Rs 15,000 for medical expenses during each nancial year.
2 – Ok.LTA tax exemption can be claimed twice (two journeys taken) in
a block of four calendar years. That means, the current block of four
years is 1st Jan 2014- 31 Dec 2017 block.
If you went only on one vacation in these four years, the other one can
be carry forwarded on the next 4-year block, but this must be claimed
in the rst year of the next block, meaning by 31 Dec 2018.
3 – Kindly read : Different Asset classes have different Tax implications
– How Returns are taxed?
Reply

April 11, 2017 at 5:09 pm
thanks !
Reply
Ritesh says:
April 7, 2017 at 3:02 pm
Home loan1 has 1.43 lakhs interest and 1.25 lac prinicpal ( which i claim as self occupied)
Home loan2 – i pay 7 lacs interest and 5 lacs principal (and rent received 15K/month – 30%
) accounted and remaining comes around
= 5.75 lacs interest and 5 lacs prinicipal
so myself claim total interest = 3.43 L , principal 1.5 L ( not sure i can claim principal from
2nd HL or i will be capped from 1.25L )
my wife claim interest = 2 L , principal 1.5L ( not sure my wife can claim both principal and
interest even though for her its 1st HL).
With the above conditions can you suggest best way to claim the 2 home loans from both
of us, we pay heavily the interest( close to 9.43L interest + 6.25L as principal) to the banks
need good suggestions to override accounting the changes in this budget.
Reply

April 7, 2017 at 3:17 pm
Dear Ritesh,
You can claim principal repayment of up to Rs 1.5 Lakh u/s 80c. And interest
payments of up to Rs 2 Lakh only can be claimed (both properties put together) and
the remaining unclaimed loss has to be carried forward to next assessment years.
Same would be the case with your spouse, if she is a joint borrower/owner.
Reply
Hema Desai says:

April 6, 2017 at 12:19 pm
Hello Shrikaanth R
Really very well drafted Article. Very useful to plan and explain it to Employees.
All the very Best!
Reply

April 6, 2017 at 12:29 pm
Thank you dear Hema.
You may kindly suggest your friends / team to go through other related articles as
well.
Keep visiting ReLakhs
Reply
Chandresh Nigam says:

April 3, 2017 at 11:04 am
Hi Sreekanth, Hope you’re doing well.
I’ve few queries on Income tax :
1- My CTS is 10 Lakh
2- My savings / rent details are below
a- LIC (Brila Vision Lifeincoe) – 39,400/yearly,
b-ULIP (HDFC Click 2 Protect) -48,000/yealy
c- Company PF – 39060
d- PPF – 10000
e- Rent – 10000/ Month
f- 3 Lakh medical cover from company
Planning to take Term plan ( 1 Cr life cover), earlier I took it but that I’ve cancelled due to
wrong info.
I can’t take home loan due to family responsibilities.
Could you pls suggest me in which section like (80 EE/ 80 GG) I can invest some money to
save more tax.
Thank You !!
Reply
April 3, 2017 at 3:07 pm

Dear Chandresh,
What is 2.a . product?
Tax saving should not your starting point to plan investments.
May I know your nancial goals / objectives?
I have provided almost all important sections in the above article, you may refer to
them…
Reply
Mohit Bansal says:

April 2, 2017 at 7:35 pm
I bought a house in Noida, Builder got CC so he offered tout based possession, i moved in
in Jan 2017. This is my rst property. No registry happened yet, not sure if registry will
happen in FY (2017-2018) also. My questions are:
1. Can i claim “Repayment of Principal Amount on Housing Loan” under 80C?
2. Can i get bene t under 80E for payment of Interest.
3. I work in Gurgaon, can i get bene t of HRA also?
Reply

April 3, 2017 at 11:52 am
Dear Mohit,
1 & 2 – No, as the registration is yet to happen. (It is sec 80EE and not 80E).
3 – If you are using the property for self-occupation, you can not claim HRA.
Reply
Srikanth Varma Chakka says:

March 29, 2017 at 10:00 pm
Hi Sreekanth,
Hope everything is going well with you. I’ve a query related to section 24B.
If I’ve a house in Hyderabad and it’s the only house on my name, can I still claim the
interest loss on house property by giving it as let out property or My tax exemption in this
case is also limited to two lakhs ?
Please clarify. I’m confused because in your article it is mentioned about the change in rule
for second house onwards.
BR, Srikanth Varma
Reply

March 30, 2017 at 12:34 pm
Dear Srikanth,
All is well! thank you!
Trust the same with you.
It is limited to Rs 2lakh only and the unclaimed loss can be carried forward.
Reply
Srikanth Varma Chakka says:

March 30, 2017 at 2:02 pm
Thanks for your reply Sreekanth.
To conclude, whether it’s a rst or second house and either it’s a self
occupied or let-out property, the max tax exemption would be 2 Lakh.
(Irrespective of number houses total income loss on house property would be
4Lakhs (2Lakh on 1st house + 2 Lakhs on rest of the houses).
This is too bad. Lot of my friends (including me) will be greatly effected by
this. It should have been for the loans taken on or after April 1st 2017. A lot of
us take large amounts on home loans considering the fact that we can save a
lot on income taxes.
This is kind of a unprecedented burden as we can’t clear this large loan and
can’t keep it with loss of IT bene ts.
What’s your view on this move?
Reply

March 30, 2017 at 2:33 pm
Dear Srikanth,
It is Rs 2 Lakh and not Rs 4 Lakh.
May be, yes, the amendment could have been for the loans taken from
FY 2017-18 onwards and not retrospectively.
Reply
RAJ says:
March 29, 2017 at 2:00 pm
Dear Sreekanth,
Happy Ugadi to you and your family and relakhs.com
regards
RAJ
Reply

March 30, 2017 at 12:32 pm
Thank you so much dear Raj..
Wish you too the same, happy Ugadi!
Reply
Suchita says:
March 28, 2017 at 11:33 pm
Hi , I want to know more about section 80GGT as my husband is working in a NGO n
doesnt get any HRA nor do we own a house. Kindly advise
Reply

March 30, 2017 at 12:31 pm
Dear Suchita ..Are you referring to 80GG?
For more info on Section 80GG, you may go through this link..
Reply
SRINATH says:
March 28, 2017 at 7:42 pm
Hi Sreekanth,
Its really good read this blog, i have very less knowledge about Mutual Funds, and Iam very
interested to invest in it, i can invest Rs.12,000/- per month, for next 15 years, to take care
of my kids education & marriage etc.
please suggest where to invest how much to invest
thanks in advance
Regards
Srinath
Reply

March 30, 2017 at 12:27 pm
Dear SRINATH,
Kindly go through below articles and you may revert to me if you need more info;
Kid’s education goal planning.
List of best investment options.
Best Equity funds.
How to select right mutual fund schemes?
Reply
Ramnath says:
March 28, 2017 at 4:27 pm

Hi Sreekanth
I own a house in my home town now residing in quarters owned by my company for which
they add perks in my salary.kindly let me know whether there is any section in IT act where
present perks can be exempted while ling ITR so that I can claim any refund if any and I
don’t have any housing
loan.
Reply

March 30, 2017 at 12:25 pm
Dear Ramnath,
May I know what kind of Perks are they?
Reply
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Stocks ( Equity ) Tax Planning More…

Income Tax Exemptions FY 2017-18 : List of important IT

Financial Year 2017-18 (Assessment Year 2018-2019) .

income gets reduced to that extent.

List of Income Tax Exemptions FY 2017-18 / AY 2018-19 (Chapter VI-

section 80c are as below;

PPF (Public Provident Fund)

EPF (Employees’ Provident Fund)

Five year Bank or Post of ce Tax saving Deposits

NSC (National Savings Certi cates)

ELSS Mutual Funds (Equity Linked Saving Schemes)

Kid’s Tuition Fees

SCSS (Post of ce Senior Citizen Savings Scheme)

Principal repayment of Home Loan

NPS (National Pension System)

Life Insurance Premium (Read : ‘Best Term insurance plans‘)

Sukanya Samriddhi Account Deposit Scheme

maximum allowable Tax deduction under this section is Rs 1.5 Lakh.

can be claimed as tax deduction under Section 80CCD (2).

(Read : ‘NPS Scheme – Pros & Cons‘)

insurance, deduction is allowed for Rs 30,000 toward medical expenditure.

To claim this deduction, you have to submit Form no 10-IA.

(above 80 years) the limit is Rs 80,000.

(b) Dystonia Musculorum Deformans

(c) Motor Neuron Disease

(h) Parkinson’s Disease

Full Blown Acquired Immuno-De ciency Syndrome (AIDS) ;

Chronic Renal failure

the deduction for the next two Financial Years too.

and the ceiling limit is not per house property).

home loan(s) with an intention to save taxes alone.

educational loan cannot be claimed as tax deduction.

for claiming tax deduction under section 80EE.

Rent paid minus 10 percent the adjusted total income.

Rs 5,000 per month.

Rebate under Section 87A

rebate u/s 87A.

that lower amount i.e. Rs 2,000 only.

Interest) to come up with the net taxable income.

income from xed deposits.

(Image courtesy of Stuart Miles at FreeDigitalPhotos.net) (Post rst published on : 27-March-

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Anand Gaikwad says:

Sreekanth Reddy says:

Anand Gaikwad says:

Sreekanth Reddy says:

Home loan – 125000/Year

Sreekanth Reddy says:

You will get deductions as under

so,you will get total 2,59,000 as deduction

I have a doubt in HRA…

Sreekanth Reddy says:

Sreekanth Reddy says:

If your employer also contributes to Pension Scheme, the whole contribution

Stamp duty and registration fee can be claimed u/s 80c.

Dilendra nayak says:

Pls suggested how much tax i want to pay as a professional

Sreekanth Reddy says: