Budget 2017 will help generate greater savings for individuals, says Finance Minister Arun Jaitley. To boost your personal finances, here's help to save more.
Joint home loans
If you have bought a new flat jointly with your spouse and are also paying the home loan together then each of you is entitled to a deduction of Rs 2 lakh to Rs 2.5 lakh. If you have a working son or daughter and the bank is willing to split the loan three ways, all three can avail deduction.
When you’re transferred to a new city, the hotel accommodation given by employer for the first 15 days is not a taxable perquisite.
Leave Travel Concession (LTC) exemption is allowed to you as a salaried employee for 2 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 (2016), do so now. Keep proper tabs, retain relevant travel bills and claim your LTC.
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.
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.
An individual can claim deduction under Section 80GG for rent paid, even if the employer doesn't give House Rent Allowance (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 Rs 5,000