HOW DTC-2012 WILL CHANGE THE WAY HOW YOU SAVE TAX!!!!

WELL THIS IS THE LAST PART OF THE SERIES.....

REAL ESTATE (M.M.IMP.)

• THE REPAYMENT OF PRINCIPAL OF HOME LOAN WILL NOT BE  ELIGIBLE FOR TAX DEDUCTION UNDER DTC2012
• THERE IS REMOVAL OF TAX ON NOTIONAL INTEREST!!!!!! (BIGGEST AMENDMENT GUYS!!!!)
• RIGHT NOW PEOPLE WHO OWN MORE THAN HOUSE HAVE TO PAY TAX ON THE NOTIONAL RENTAL INCOME EVEN IF SECOND HOUSE IS LYING VACANT.
• DTC WILL REMOVE THIS ANOMALY AND MAKE SECOND HOME MORE TAX EFFICIENT!!!!
• ANOTHER LANDLORD FRIENDLY MOVE IS THAT ADVANCED RENT RECEIVED FROM A TENANT WILL BE TAXED IN THE YEAR TO WHICH IT RELATES AND NOT IN THE YEAR IN WHICH IT IS RECEIVED.
• IT HAS RETAINED THE TAX BENEFIT ON INTEREST PAID ON HOME LOAN.

IMPACT ON DEBT SCHEMES:-

• THE PROPOSAL OF TAXING WITHDRAWLS FROM THE PPF IS JUNKED.
• THERE'S A NEW RULE FOR CALCULATING THE INDEXATION OF CAPITAL GAINS.
• IN ORDER TO AVAIL THE INDEXATION BENEFITS THE ASSET WILL HAVE  TO BE HELD FOR MORE THAN ONE YEAR FROM THE END OF THE FINANCIAL YEAR IN WHICH IT WAS BOUGHT.
• THIS IS A SIGNIFICANT CHANGE AND WILL IMPACT THE WAY INVESTORS IN FMP,s (FIXED MATURITY PLANS) AND DEBT FUNDS USE THIS BENEFIT.

THE END.