Hot Tips For Cool Savings

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Hot Tips For Cool Savings

Joint home loans 
If you have purchased a new apartment jointly, say, with your spouse, and are also paying the home loan jointly, then each of you is entitled to deduction of 2 lakh-2.5 lakh. In case you have a working sondaughter and the bank is willing to split the loan three ways, all three can avail deduction.
 

Perk 
Hotel accommodation given by employer for the first 15 days when you move to a new town on transfer is not a taxable perquisite.
 

Travel 
LTC exemption is allowed to you as a salaried employee in respect of two domestic journeys taken in a block of 4 calendar years. The current block of four years commenced on January 1, 2014.So if you haven't taken that much-needed break last year, do so now. Keep proper tabs, retain relevant travel bills & Claim your LTC

Transport 
For claiming transport allowance exemption, you don't need to submit expense proof. But if you are incurring expenses on official travel, your employer can reimburse the expense on the basis of the claim submitted (backed by bills) and this is not taxable.
 

Provident Fund 
There is a block-in period of 5 years for PPF withdrawals. But a loan on the accumulated balance may be obtained (after expiry of one year from the end of the financial year in which initial deposit was made) for certain purposes, subject to various limits.
 

House rent 
An individual can claim deduction under Section 80GG for rent paid even if the employer doesn't give HRA. The condition is that he or she doesn't own a house and neither does the spouse or child. The deduction is subject to a ceiling of 5,000 per month.
 

ESOPs 
No need to pay tax when options are granted by your employer to you under an employee stock option plan. Taxability arises on actual allotment of shares and not on grant or vesting of options. Such income is taxed as regular salary income and is subject to tax withholding by the employer.
 

HRA & Loan 
HRA exemption and interest deduction on housing loan can be availed simultaneously, if the house bought with the loan is in a city different from the place of work, where you've rented a house as daily commuting is not possible.


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