the govt promoted home loan and in the new income tax code wants to eliminate benefits. it is fair.?



the governement allowed all sorts of benefits on houme loans and now in the new income tax code, it is to be eliminated. is it fair. how do you take it. besides all financial benefits including pensionary benefits are to be taxed. where is the incentive. there is no meaning for welfare savings. should not the home loan benefit be continued to promote housing sector.

the govt promoted home loan and in the new income tax code wants to eliminate benefits. it is fair.?
Rate these answers

2 Replies to “the govt promoted home loan and in the new income tax code wants to eliminate benefits. it is fair.?”

  1. New ‘Direct Tax Code’ is released for public debate and likely to be presented in Parliament’s winter session, to come in force from 01.04.2011.

    Log on to the finance ministry web site and post your comments.

    +440000 Gross Income
    -100000 Investment u/s 80C (Including Principal component Rs 30000 of home loan)
    -040000 Interest component of home loan u/s 24(b).
    ————————————————-
    0300000 Taxable Income @ 10%

    After the New Direct Tax Code the Gross Income will increase as certain benefits u/s 10 will be removed.

    +470000 Gross Income
    -070000 Investment u/s 80C (Principal component Rs 30000 of home loan removed)
    -000000 Interest component of home loan u/s 24(b) removed.
    ——————————————————-
    0400000 Taxable Income @ 10%

    •Only those who fell in the 20% / 30% bracket of Rs 3 lakhs & above will benefit.
    •80C limit has been increased from Rs 1 lakh to Rs 3 lakhs, but you must have that kind of surplus money to invest.

    HMT


  2. Hi Dear

    Still the new Code has not come into effect. It has to be reviewed and when the final Notification comes we can see the fairness of the government.
    Take it from me it will finally be fair





Leave a Reply

Your email address will not be published. Required fields are marked *