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Feb 28, 2013 at 07:02pm IST

First time buyers should take home loan after April 1 for maximum tax benefit: Subhash Lakhotia

Tax expert Subhash Lakhotia joined IBNLive readers for an interaction on the impact of Budget 2013 on taxes and investments.

Q. My CTC is 12, is there any benefit/loss to me as per new Budget? Asked by: namish

A. You will have only one benefit namely of claiming tax deduction as per section 80CCG were in now a person with income upto Rs 12 lakh can get the benefit foe investment in Rajiv Gandhi Equity saving Scheme, otherwise no benefit to you.

'First time buyers should take home loan after April 1'

Subhash Lakhotia joined IBNLive readers for an interaction on the impact of Budget 2013 on taxes and investments.

Q. Hi Subhash, Please explain what does tax credit means and how can I take benefit of it. Asked by: Mohan Kumar

A. The new provision as per the Budget is contain in section 87A where by you can get tax Rebate equal to 100 per cent of income tax or maximum rs2000 however the most important point is that your total income should not exceed Rs 5 lakh hence if it exceed 5lakh then you have no tax benefit at all, Now tell me is this Budget is good for you?

Q. I want to buy a 2nd home by taking a housing loan. Will I get tax benefit? If yes, how much "notional rent" will I have to show for the present home which I am occupying, if any? Asked by: Suprio Choudhury

A. As per the Budget no tax benefit to you. However if this second house which you are proposing to buy is given on rent in that situation the entire deduction would be available to you.

Q. Sir, if I take home loan against my house ie mortgage or renovation/repair, will I get the tax benefit under the new scheme? Asked by: Anu

A. No, not at all it would be available only in respect of new loan sanction from 1st April 2013.

Q. Would DTC be approved and when? What benefits would DTC have for aam aadmi? Asked by: Avinash S B

A. The Finance minister have promise to bring final draft of DTC in this Budget session itself. If it is presented as per the plan then we may hope to get it passed by the parliament this year.

Q. I have a home loan running and heard the tax will go down towards that. Planning for another home loan too. Please advice how this will help my IT going down. Asked by: Sundar

A. Very Sorry to inform you that you will have no tax benefit at all on buying your new dream home. Please do remember that new tax benefit would be applicable for the person who do not own any property and the loan is sanction after 1st April 2013.

Q. I am going to take home loan from April 2013. What tax benefit I'm going to get and what is your suggestion for me to get the max. benefit? Asked by: TG

A. You will get the Tax benefit provided value of the property not more than 40lakhs, Loan not more than 25lakhs then you get deduction as per the new provisions upto Rs 1lakh.

Q. Can you please elaborate the tax credit thing which you explained in the above question? Asked by: Pramod Kuruvilla

A. As per new section 87A tax rebate will be available equal to 100% of income tax subject to maximum rs2000 only for individual who 's income does not exceed rs 5lakhs. For example if your income for financial year 13-14 is Rs 3lakhs then as per the present system tax will be Rs 10000. Now from this amount of Rs 10000 deduct the sum of rs2000 and thus the net tax payable for financial year 13-14 would be Rs 8000.

Q. Do we get tax benefit for home loan which is for repair/Mortgage? Asked by: Sneha

A. Yes, upto Rs30000 per annum.

Q. Buying infrastructure bonds can give how much exemption now? Asked by: Ramesh

A. No separate exemption now available for your investment in infrastructure bond.

Q. If I take home loan(for Mortgage/repair) in April for first time, against a house I have got as a gift from parents, will I get tax benefit? Asked by: Sneha

A. Yes, upto Rs30000.

Q. How should some one earning around Rs 20 lakh plan his investments now? Asked by: Tanuj

A. Invest upto Rs1lakh and take tax deduction under 80C, further invest in Rajiv Gandhi Equity saving Scheme(first time investor in shares)also invest in Mediclaim policy and finally think of buying a new house and save income tax on the interest payment.

Q. So, if a house owner wants to buy 2nd new home then he has to wait for 2014 budget if any new plan comes? Asked by: TG

A. I would not like to tell you to wait till budget 2014. Better you start buying second house now or else there may be price escalation next year and may be you may not be able to buy the house.

Q. Will home loan & bank FD rates will go down further? Asked by: Somil

A. I don't see any strong reason in reduction of bank loan interest rates and bank FD interest rate. 2days ago, SBI had increase interest rate by 25basis point.

Q. I am a working student. I am earning around 3 lakhs per annum. So how should I plan my investments and what benefits do the budget 2013 hold for me? Asked by: Nitish Kartha

A. For you it is advisable to invest Rs 80000 in next financial year so as to get deduction under section 80C and next year you will also get rebate of rs 2000 as per the new section 87A.

Q. Hi Subhash, I have 35 lakhs Rs home loan but now the principal has come down to 25 lakhs. Can I transfer my loan to another Bank for 25 lakhs and claim this benefit. Asked by: Parthiban

A. Sorry, you will not enjoy any tax benefit even if you transfer the home loan because their is a condition that the assessee does not own any residential house property on the date of the sanction of the loan.

Q. I have invested in shares in my, can I invest in Rajiv Gandhi Equity saving Scheme for my spouse to avail tax benefit, if then, how much. Asked by: Ramesh

A. Your spouse can get the tax benefit assuming she has not yet invested in the stock market.however investment by your spouse will not bring tax advantage to you.

Q. I have a demat account. In which some shares were traded 5 years back. There is no activity from last 5 years, Can I avail benefit under Rajiv Gandhi scheme? Asked by: Sneha

A. Sorry, No.

Q. Will my parents be taxed under capital gains if they gift me a house? Asked by: Kamya

A. No, not at all, rush fast if you like and get the property from your father without any liability for capital gain tax.

Q. For a house wife like me, is there any good news from this budget. All I am earning is through FD's in bank Asked by: mala

A. Sorry, No special tax benefit or good news for housewife like you only if you income is within rs5lakhs than you save rs 2000. Likewise if you have no house take loan and buy a new house in the financial year 2013-14 and save tax.

Q. Pls explain more about the inflation related bonds and Rajiv Gandhi mutual fund investment scheme. I think there is 2 L increase on it Asked by: Balaji

A. Sorry there is no 2 lakhs increase however the increase is for 2 more years for investment in Rajiv Gandhi Equity Scheme. As regards inflation related bonds details will be received in due course.

Q. What is the new tax slab? Is it the same as previous year? How much percentage is the tax to be paid for a annual income of 6? Asked by: Anusha

A. Exactly no change at all the tax rates continued to be same on your income of Rs 6lakhs.

Q. As per today's announcement there is rebate of additional 1 Lac for home loan up to Rs. 25 Lac for first time buyer. If I buy my first house and rent it out, will I be eligible for the benefit or do I need to stay there since I claim HRA currently. Asked by: Arun

A. No compulsion to stay because the deduction is available for loan taken from financial institution for acquisition of residential house property.

Q. Hello Sir, I work in Noida and stay on rented house. Can I buy my first house in Jaipur, take loan of Rs 25 Lac and claim both HRA exemption and interest rebate. Please advice Asked by: Garima

A. Yes yes, but better take the loan after 1st April 2013 for maximum tax benefit.

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