How to save tax with salary more than 10 lacs

Tax planning 340 views 3 replies

Patrick

Private Company Employee

30 Points Joined August 2016

I am going to switch my job and I will be getting 13.78 lacs salary there. How can I save my tax ?

My investments for previous salary (7 lacs) were:
1) PPF - 24000 (2000 monthly)
2) ELSS - 72000 (6000 monthly)
3) EPF - 33360
4) Term insurance - 4000
This almost covers my section 80C and I was also saving tax with HRA.

Now with my increased salary of 13.78 lacs, I can think of saving tax with home loan.
My job is in Hyderabad and my hometown is in Vadodara.

My Plan is to take two 2BHK flats of 16.25 lacs each in Vadodara (hometown) with 2.25 lacs as other charges (service tax + docs + maintenance etc) on each. And I am planning to take home loan of 30 lacs to utilise section 24 and section 80 EE. Aim of this plan is to save tax + investment.

Why Vadodara?
Because Its not decided where I am going to settle in future(either Pune or Hyderabad or Bangalore) and my parents can take care of the house in Vadodara.

new salary structure:
Basic = 6.50 lacs
HRA = 2.60 lacs
Conveyance allowance = 19.2 k
Medical allowance = 15 k
LTA = 80 k
Special allowance = 2.758 lacs
PF = 78 k
Total = 13.78 lacs

I know I can save tax on LTA, conveyance and medical allowance.

Questions:
1) Is my planning correct or it require some modifications?
2) Any other way to save tax
3) Can I take combined loan for 2 flats or it depends on Bank?
4) Should I take separate loan for each flat or combined?
5) For separate loans, can I take benifit of no limit on max limit of loan interest on 2nd home loan?

Any help would be appreciable.

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197108 Points Joined July 2016

1. You can can addidional deduction u/s. 80CCD of max. amount 50K

2. You should go for seperate home loans for both the flats, for more interest deduction. Though rental income (actual/deemed) may be added to income, but usually interest paid is more than the additional rent income.

Patrick

Private Company Employee

30 Points Joined August 2016

Originally posted by : Dhirajlal Rambhia
	2. You should go for seperate home loans for both the flats, for more interest deduction. Though rental income (actual/deemed) may be added to income, but usually interest paid is more than the additional rent income.

I compared interest part in EMI for 15 lakhs and 30 lakhs and they are same i.e. 2 x interest in EMI for 15 lacs is equal to interest in EMI of 30 lacs.
I compared EMI's here https://emicalculator.net/

Is there any other pros and cons of combined and separate loan?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197108 Points Joined July 2016

You have missed the real point, I think.

The deduction of home loan interest u/s. 24 B is available to any number of house property. When you have only one combined loan, the deduction will be available over one house property, but otherwise you can have over both the property independently. (Please read with other points as replied earlier)