Incoem tax return for 2019-20 has been extended till 30 November. Taxpayers are searching for the option of maximum deduction for themselves to save more and more tax. In this article, you are going to tell about the deduction available under different sections.
It is not at all wrong to take advantage of deduction. But taxpayers should pay the tax honestly after deduction. In the Income Tax Act, different types of investments are taxed under different sections. This is similar to how your individual earnings are taxed after a limit. The government has put forward two more options for deduction for the financial year 2019-20. If you have purchased an economical home and electric vehicle, it also has the benefit of deduction. Due to 5 years delay in investment, you may lose 1 crore!
Additional 1.5 lakh deduction at affordable home
CMA Rajesh Jha said that in order to improve the condition of real estate, in the Finance Bill 2019, 1.5 lakh additional deduction on affordable house was announced under section 80EEA. This benefit can be availed on interest payment. The price of the house should not be more than 45 lakhs plus it should be the first house of the taxpayer. This is different from the exemption on 2 lakh interest received under section 24B. This means that if the interest payment for the home loan is more than 2 lakh in the financial year 2019-20, then additional 1.5 lakh can be availed under section 80EEA.
1.5 lakh deduction on electric vehicle
To promote green energy, the government is promoting electric vehicles very much. For the financial year 2019-20, the government announced a 1.5 lakh rebate in interest to those who buy electric vehicles. This exemption has been announced under section 80EEB. For this, a vehicle loan must be from a financial institution. The loan can be availed on the loan that was issued from 1 April 2019 to 31 March 2020.