How to get maximum tax exemption ( 2nd house or gift)

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prabhakar (Querist)

29 October 2011 Hello Sir
I am working in a oil and gas mnc in india and come under 30 % tax deduction category.I have a home loan and my 1,20,000 limit is already exhausted.also giving medical insurance premium by company itself.how can i save tax apart from this.how can gift to my wife /children/parents/ can get me tax exemption/or purchasing 2nd home..
pls help me as lot of amount is deducted as tax now.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

29 October 2011 In case of a self occupied home through home loan, you are getting deduction of interest
payable by you. It is limited to 1.50lac U/s 24.

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Gift to wife and minor children will attract clubbing provisions. In such cases income from gifted money will be added in your income.

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Presuming that you desire to save tax on your Salary Income, you may exercise the option of purchasing another house by taking a housing loan after considering the following factors and facts-
1. Property Prices- at present as well as in future.
2. Increasing Housing Loan Interest Rates.
3. Tax Savings by claiming Additional Interest (( Interest on Housing Loan -70% of Rental Income)*30%)
4. Other Family Obligations.

prabhakar

prabhakar (Querist)

03 December 2011 Sir
Thanks for your kind reply.
I am planning to purchase a second ready to move in home by taking a second home loan .My question is if i get the second flat registered in my wife's name (she is a housewife) will i get the interest benifit for 2nd property.She will be recieving the rent.

secondly can i claim hra exemption if my parents stay in my first house and if i dont purchase my second house and stay in a rented accomodation.
pls advise sir.

rgds

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