If you opt for a new tax regime, no deduction for interest under section 24b is available for self-occupied house property. There is no tax liability on the donor as well for gifts made to any person under the Indian tax laws. The deduction under Section 80TTB is not available if you opt for a new tax regime.
What is the latest rule regarding the upper limit of interest deduction for home loans? In most places, it mentions two lakhs rupees, but at one place I read that in case of a let-out house, it can be more than two lakhs. Is it correct? Please clarify
Deduction U/s 24 is available on interest in respect of capital borrowed for acquiring, constructing, repairing, renewing or reconstructing a house. For a maximum of two self-occupied properties taken together an amount up to two lakh rupees can be claimed. In case the house is let, full interest can be claimed against the rental income under the old tax regime. However, loss up to Rs. 2 lakhs under house property head can only be set off against other income during the same year and unabsorbed loss has to be carried forward for set off against income from house property head in eight subsequent years under the old tax regime.
If you opt for a new tax regime, no deduction for interest under section 24b for interest is available in respect of self-occupied house property. In case, the property is let out, loss under house property cannot be set off any other income or carried forward for set off in future.
Can I gift Rs 50,000 each to my son-in-law and daughter-in-law in one day? If so, is there any tax liability on the donee or donor?
If the aggregate value of all gifts received during a year exceeds fifty thousand rupees whole of the amount becomes taxable without any basic exemption. However, gifts received from specified relatives including a son-in-law and daughter-in-law are not treated as income in the hands of the recipient irrespective of the quantum of the gift received.
There is no tax liability on the donor as well for gifts made to any person under the Indian tax laws. Though there is no incidence of tax at the time of making the respect of gifts made to your daughter-in-law, the income earned on the amount gifted to her will attract the clubbing provisions. Income earned by your daughter-in-law will be included in your total income under the provisions of Section 64 till the relationship subsists.
I am a senior citizen and have interest income under the Senior Citizen Saving Scheme (SCSS) as well as Savings Bank. I also have accrued NSC interest. Can all these interests be claimed under Section 80TTB?
Under the old tax regime, a senior citizen is entitled to claim a deduction under Section 80TTB up to Rs. 50,000/- every year in respect of interest received on deposits of any nature with post office, banks and credit cooperative society. The deposits include savings bank accounts, recurring deposits, fixed deposits etc. for this purpose. Deposits under SCSS Since NSC interest is not covered under Section 80TTB, it cannot be claimed.
Please note the deduction under Section 80TTB is not available if you opt for a new tax regime.
Balwant Jain is a tax and investment expert and can be reached at jainbalwant@gmail.com and @jainbalwant on X.
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