Prominent overlooked Deductions For Income Tax for income properties?
Income tax on even a single property owned by the salaried class which forms the major chunk of income taxpayers in the country is levied by the IT authorities. This home property could be owned by the taxpayer through various means but the income from is taxable under Section 161 of the Income Tax Act. Hence to avail the maximum deductions for income tax for the income from this property or properties is very crucial for the taxpayer to make the financial ends meet.
What is considered as income from property head of the income tax?
Income from self-occupied property rented out property and deemed income from the vacant property including houses other than the self-occupied house are the ones taxable under the head of income from properties.
Some overlooked deductions for deductions for income tax from income from properties:
Properties bought by home loans:
Deductions under Section 80 C on the principal repayment and deductions under Section 24 can be made and commonly known to many taxpayers. But even for the processing fees and ancillary expenses for availing the home loan could be used for deduction of income tax under Section 24.
Deductions on interest paid to the lender of the down payment for the home loan. Even the loans for building any extra constructions other than the home loan and also loans for renovations can be claimed for deductions under Section 24 of the income tax act. A loan agreement is necessary for deductions on the interest paid to the lender.
Housing rent allowance is taxable if you are not living in a rented house. Hence if you are living in an ancestral home or that of your parents or spouse it is better to pay rent to get it used for the deduction of the income tax.