Revenue tax calculator: In Funds 2021, Union Finance Minister Nirmala Sitharaman had prolonged earnings tax profit underneath Part 80EED until thirty first March 2022 that allowed first time residence consumers to assert earnings tax exemption on as much as ₹1.50 lakh residence mortgage curiosity cost in a single’s residence mortgage EMI, supplied the home property is priced under ₹45 lakh. However, this profit hasn’t been prolonged in Funds 2022 meaning new first time residence consumers must pay extra earnings tax from subsequent monetary 12 months. Nevertheless, if a taxpayer is mulling to purchase residence in internet monetary 12 months, she or he can nonetheless avail this earnings tax profit whereas submitting one’s earnings tax return in subsequent fiscal. What the house purchaser want is to get its mortgage authorized in present monetary 12 months and purchase residence in subsequent monetary 12 months.
Talking on how a house purchaser can nonetheless avail earnings tax profit underneath Part 80EED of the earnings tax act, Mumbai-based tax and funding knowledgeable Balwant Jain stated, “Whereas ITR submitting from subsequent fiscal, a taxpayer will not have the ability to declare earnings tax profit underneath Part 80EED of the earnings tax act as this profit ends on thirty first March 2022. Nevertheless, in case, a taxpayer is mulling to purchase its dream residence subsequent fiscal, it nonetheless has an opportunity to avail this advantage of earnings tax exemption on ₹1.50 lakh residence mortgage curiosity cost in a single monetary 12 months.”
On how an earnings tax payee repaying residence mortgage EMI can declare the profit subsequent monetary 12 months, when the profit ends in present fiscal 12 months, Balwant Jain stated, “The profit remains to be accessible until thirty first March 2022. So, if a taxpayer is planning to purchase its dream residence in subsequent monetary 12 months, it wants to use for a house mortgage proper now and get sanction letter earlier than the top of this monetary 12 months i.e. earlier than thirty first March 2022. Having residence mortgage sanction letter throughout the given interval of the profit, one would have the ability to declare earnings tax profit even when they purchase their residence after a while however throughout the given validity interval of the authorized residence mortgage.”
Balwant Jain stated that the thought would work for first time residence consumers solely and the home property value needs to be under ₹45 lakh.
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