The Hindu Business Line : Tax-free fee for a taxing course

AS PER Section 80C of the I-T Act, investments up to Rs 1 lakh will qualify for deduction from the gross total income. Such eligible investments are by way of contribution to PF, life insurance premium, National Savings Certificate, etc.

Apart from this, the tuition fee for children's education also qualifies for deduction. Is there a ceiling on the amount of tuition fee that will qualify for deduction?

Antony

Reply

You are right in pointing out that certain payments and investments, such as PF and life insurance premium, qualify for deduction from gross total income under Section 80C.

Tuition fee paid for the education of children will also qualify for deduction.

The deduction will, however, be restricted to a maximum of Rs 12,000 per child and will not be available in respect of more than two children.

This will mean that the maximum deduction that can be claimed in respect of children tuition fee will be Rs 24,000. You may also note that this will be within the overall ceiling of Rs 1 lakh.

Query

Will deduction under Section 80C be available in respect of a housing loan taken for constructing a house which is self-occupied?

Vishwanath

Reply

The deduction under Section 80C in respect of the principal repayment of the housing loan will be available whether the house is self-occupied or let out.

You will, therefore, be able to claim the said deduction.

Query

Do I have to obtain a certificate from a CA or give a self-declaration along with my tax returns for the proceeds received on sale of an asset acquired by inheritance?

Aslam

Reply

There is no need for you to file a CA's certificate give a self-declaration.

You may, however, note that the figures of cost of acquisition and sale consideration will form part of your return of income.

The return of income contains a declaration, which requires an assessee to state that the information given in the return is true and correct.

Query

I have purchased a house in Bangalore.

For this purpose I have taken a housing loan of Rs 9,00,000. I have also used my own funds of Rs 1,00,000 towards renovation and painting of the house.

This house is self-occupied. Will I be able to get any tax benefits in respect of the loan taken and also in respect of the expenditure incurred on renovation?

S. Narayana Rao

Reply

The interest on the housing loan can be claimed as a deduction under Section 24 against the annual value of the house property.

If the property is self-occupied and is the only property which is self-occupied, the annual value would be taken as nil.

The principal repayment of the housing loan will qualify for deduction under Section 80C from your gross total income. No separate benefit can be claimed in respect of the expenditure incurred on renovation from out of your own funds.

(Mail your queries to taxtalk@thehindu.co.in or by post to `Tax Talk', Business Line, Kasturi Buildings, 859, Anna Salai, Chennai-600002.)

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