et Ahead readers had a chance to speak with our home loans expert Harsh Roongta.
With the recent Budget 2005, readers had a lot of questions to ask!
This is a transcript of the chat:
Parag : Will there will be a rebate in payment of principal amount of a housing loan?
HARSH ROONGTA : The Finance Bill 2005 has proposed to replace the tax rebate clause (Section 88), which provided a deduction from the amount of tax payable with the new section 80C. This will allow a consolidated deduction.
One of the items that can be deducted is the principal repayment of a home loan. This is within the overall limit of Rs 100,000 for all deductions. I must hasten to clarify that the deducction for interest payment on a home loan is a separate limit and has not been disturbed at all.
Shailen : By investing in a mediclaim policy, do I get the entire premium (Rs 9,000) amount deducted from my taxable income?
HARSH ROONGTA : The Finance Bill 2005 has not proposed to change the provisons of Sectionn 80D, which allows for a deduction of upto Rs 10,000, in respect of mediclaim premium paid.
Jon : Does the HRA exemption with conditions still exist with the new tax system? Are PPF maturity payments, LIC bonuses and maturity amounts taxable as per new tax regulations?
HARSH ROONGTA : Could you make the question more specific please?
Caroline : My salary is Rs 15,000 per month with an LTA of Rs 10,000. Keeping this in view, how much do I have to invest in the forthcoming financial year and what are the areas where I can put my savings in?
HARSH ROONGTA : Your annual salary comes to Rs 1,90,000 (15000 x 12 + 10000). From these, you need to invest in the eligible modes upto Rs 65,000 if you are a woman assessee, and Rs 90,000 if you are a male assessee to pay nil tax.
Harsh Vardhan Roongta has over 21 years of experience in financial services and consultancy. He is the CEO of apnaloan.com, a neutral marketplace for loans and credit cards.
