How to save taxes in a new tax regime: The new tax regime is a sensation among taxpayers! They do not need to pay any income tax of up to RS 12 Lakh. If they are salaried class individuals, this limit is RS 12.75 Lakh with a standard deduction of RS 75,000. But many complain that the charm of having benefits to save taxes from the former tax regime is not in the new. It’s true! But partial. Like the new tax regime, it provides tax benefits for employer’s contributions to the National Pension System (NP). If that is not enough, it provides up to 200,000 rupees in tax benefits on the interests of mortgage loans! Yes, you heard that well! But there is a trap!
When we think about taking advantage of tax benefits in a mortgage loan, the first image that our mind hits is from the old fiscal regime, which provides benefits for the principal and interests!
In a setting loan joint with a spouse, the benefits were up to RS 7 Lakh in the first mortgage loan.
However, the benefits of the mortgage loan tax can easily generate their entry of RS 14.75 LAKH of complete full taxes. Know how that can do!
Interest benefit of mortgage loans in a new tax regime
One can take this fiscal benefit in the payment of interest in a loan for a house that has let out.
If you reside at home, you cannot claim the fiscal benefit.
According to this rule, you can activate the net loss of the interests of mortgage loans against rental income.
The maximum fiscal benefit under this provision is RS 2 Lakh.
Calcals for fiscal benefit of mortgage loans in a new tax regime
Scenario 1
Interest on paid loan paid = RS 4.00000
Rent income = RS 2.00,000
Only loss = interest loan interest
= RS 4.00,000-2,00,000
= RS 2.00,000
In the new tax regime, you can adjust the income of RS 2 Lakh against the loss of RS 2 Lakh.
Scenario 2
Interest on paid mortgage loan = RS 7,00000
Rent income = RS 2.00,000
In this condition, the loss is RS 5.00,000, but the maximum fiscal benefit you can take is RS 2.00,000.
Scenario 3
Interest on paid mortgage loan = RS 3.00,000
Rent income = RS 4.00000
Since there is no loss of income, there will be no tax benefit.
How will you pay 0 taxes on RS 14,75,000 income
If your salary income is RS 14,75,000, and has a loss of RS 2.00,000 in mortgage loans against rental income, your taxable income will be RS 12,75,000. After a standard deduction of RS 75,000, the total taxable income will be RS 12.00,000, which is tax free.
Things that should know about the tax benefits of mortgage loans in the new tax regime
If your home in which you have tasks a loan is occupied, there will be no benefit.
If the same house is for rent (Solve), interest can be compensated with rental income.
If your expense is more than RS 2 Lakh, it will not adjust against your other income head (limit).
The government has imposed a limit. You can make such compensation for only RS 2.00,000 in tax benefits in a financial year.
(Discharge of responsibility: This is not advice. See an expert for income tax planning).