Careerbilla News

 News > Accounting

3 personal income tax googlies to watch out for

Admin| Feb 02, 2017 - 10:43 PM India

3 personal income tax googlies to watch out for

1. Investing in house property is an attractive proposition, with availability of home loans. In case of self­ occupied property, the interest on home loan is allowed a deduction of up to 2 lakh.

However, if the property has been let out (which is typically the case if you own more than one house), the interest was fully allowed. This, in some instances, could result in a loss – under the head ‘Income from House Property’. The loss could be set off fully against income under other heads – such as salary income, during that particular financial year.

Now, there is a cap of 2 lakh for set off of such loss from house property, against other heads of income. The unabsorbed loss can be carried forward and set off over a period of eight years, but such adjustment is possible only against income from house property.

2. Self­employed individuals, such as professionals like doctors or advocates, or even those engaged in vocations, like fitness trainers or beauticians, can now invest up to 20% of their gross total income in the National Pension Scheme (NPS). They would get a tax deduction from their taxable income. However, here is the catch. The overall limit of aggregate investments of 1.5 lakh stands.

3. Withdrawals from NPS attract tax. Forty per cent of the total amount standing to your credit in the NPS is not taxable on closure or opting out of the scheme. From April 1, 2017, on partial withdrawal, up to 25% of the contribution made by the employee is tax­ free. While investments made by self­-employed in NPS have been given a fillip, the benefits on withdrawal are available only to the salaried.

 

Source : http://content.timesjobs.com/3-personal-income-tax-googlies-to-watch-out-for/

Views(383)

Comments

Comments

Add Comment

No Comments Found.