The central budget of 2017 gives an encouraging note to the home loan borrowers of the country. The government has introduced new tax benefits to home loan borrowers. The reinstatement of section 80 EE and the lowering of holding period fetched delight for taxpayers.
Eligible for a tax deduction on repayment
Both the principal amount and the interest amount of Equated Monthly Instalment (EMI) are qualified for tax deduction under two separate sections of IT Act of 1961.
Even if you failed to pay few EMIs during a financial year, you are eligible to claim the tax deduction for the interest of EMI. Section 24 of IT Act clearly states that payment of interest is qualified for tax reduction.
Section 80 C mentions that the principal repayment can be claimed under deduction.
Tax benefit for joint home loan
Home loan borrowers can claim individual tax benefits, provided they are the co-owners of the property. Even if you are paying the EMI of the property owned by your parents/ spouse, you are not eligible for the tax deduction.
Claim tax benefit on interest paid during pre-construction period
You are eligible for tax benefit on the interest repayment of home loans once the property has acquired the completion certificate. Any interest paid during the construction period can be claimed in 5 equal installments starting from the financial year in which the construction is completed.
Processing fee and other statuary charges are tax-deductible
The processing fees and other statuary charges are considered as the interest and as a result, these charges are applicable for a tax deduction. According to section 80 C(2) (xviii)(d), any payment of stamp duty and registration fees are tax-deductible.
Reinstatement of Section 80EE
Section 80 EE is reintroduced with effect from April 1, 2017. The first time home buyers will get the tax benefit for home loan up to Rs 50,000 per financial year. The value of the property should not exceed Rs 50 lakh and the amount taken for the loan should be less than Rs 35 lakh. The home loan has been sanctioned between April 2016 to March 2017.
Tax deduction for loan amount taken from Friends /relatives/employer
Loan taken from an employer, friends, relatives or private lender to buy a house is eligible to claim tax deduction for the interest under section 24. The borrower needs to obtain a certificate from the lender (relative/friend/employer) which shows the detail about the amount of loan taken and payable interest etc.
Kochi Metro, the much-awaited urban transport service has come into existence on 17th June 2017. It is a cherishing moment for all Malayalies. Kochi, the commercial capital of Kerala has an improving urban mobility quotient. This Metro service is inevitable for its development.
Kochi is the eighth city in India with inter-city metro rail service, which spans 25 km across 23 stations. The 13 km long, first Phase of the metro project is completed with 11 stations from Palarivattom to Aluva.
How unique is Kochi Metro from others?
The first phase of Kochi Metro, which is about 13 km, is commissioned in a very short span of 45 months comparing the other metro services across the country. It is considered as the longest first phase of all the metro rail services of our country.
There will be a vertical garden in every 6th pillar of the 4000 metro pillars which shows the eco-friendliness. Moreover, Kochi Metro becomes the first metro service in India to utilize solar power to meet 1/4th of its electricity needs. Every metro station is having solar panels, which can generate 2.3 MW. Kochi Metro is using Communication Based Train Control technology for a flawless service, which is considered as the first of its kind.
Every station of Kochi Metro is a theme based which depicts the maritime history of Kerala; local history of the city and it offers free Wi-Fi. All the coaches of the Kochi Metro are disabled friendly and reserve seats for women, children and disabled persons. 80% of the total employees are women and it offers employment to the transgenders.
Since 1972, Wold Environment Day is observed on June 5 every year all over the planet. The day is the biggest annual event for positive environmental action. It is also about raising consciousness about the Mother Nature and its significance of protecting it. Theme for this year’s World environmental Day is ‘Connecting people to nature’, which implores people to get outdoors and into nature, to appreciate its beauty and its importance and to take forward the call to protect the Earth that we share.