Interest on loan taken from an employer, friend or private lender is also eligible for Rs 2 lakh deduction. Here, you need to obtain a certificate from the lender. The principal repayment will not be eligible for a deduction under section 80C.
HRA and loans
Deduction of up to Rs 5,000 per month under Section 80GG for rent paid can be claimed even if the employer doesn’t give HRA. However, neither the employee, nor his/her spouse and minor child must own a house.
Hold on to your house for over two years before selling. This holding period, makes it a long-term capital asset, entitling you to a lower capital gains tax of 20% plus indexation. Short-term capital gains are taxable at the slab rate, the highest rate being 30%….Read more>>