Under 80C I will be able to save only Rs1 lakh. Apart from buying infrastructure bonds what other tax-saving options do I have?
You can avail deduction under section 80D for health insurance premiums paid through any mode other than cash for policies taken for parents, spouse, dependent children and self. The maximum deduction amount that can be availed is Rs15,000 (Rs20,000 for senior citizens) for premiums paid for self, spouse or dependent children and an additional sum of Rs15,000 (Rs20,000 for senior citizens) for premiums paid for parents.
Then there is deduction under section 80E for interest on loan taken for higher education of self, spouse or children. Also, there is deduction under section 80G for donation made to certain specified funds and charitable institutions subject to prescribed limits.
A salaried class individual can also enjoy certain tax benefits against his salary income viz exemption of house rent allowance to the extent provided under section 10(13A), medical reimbursement up to Rs15,000 per annum, exemption of leave travel allowance under section 10(5) to the extent of expenses incurred on travel in India by the individual and his family (including spouse, children, and dependant parents and siblings).
I have started earning around Rs5 lakh. I have never filed income-tax returns. Will it be a problem if I apply for a home loan along with my husband?
As per section 139(1) of the Income-tax Act, every person whose total income exceeds the maximum amount which is not chargeable to tax is mandatorily required to file returns within the specified due dates.
Assuming, the entire Rs5 lakh comprises your taxable income, your taxable income exceeds the maximum exemption limit (at present Rs1.9 lakh for women), you would come under section 139(1). You should have filed returns for the respective financial years where your total taxable income had exceeded the maximum exemption limit.
While processing the loan application/documents, banks generally request for a copy of acknowledgement of tax returns for the past two-three years. So, non-filing of returns in the past may prove a deterrent for you in procuring a loan. However, if your husband was filing his tax returns in the past, there should not be any problem in procuring the loan in his name. But if the loan must be obtained in your name and the bank is insisting for acknowledgement of past year’s returns, then the last resort would be to file a belated return for FY10 (the last due date being 31 March 2012). Also, returns can be filed for FY11.
As a matter of advise, you must file your returns on time as it would not only help you while applying for loans but also save you from unnecessary interest or penal consequences.
Nitin Baijal, director, BMR Advisors
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