BANKING AFFAIRS

Detailed explanation-1: -For interest paid on home loans for affordable housing, an additional Rs.1.5 lakh tax deduction under Section 80EE can be availed till 31 March 2022. This is applicable for loans that were received till 31 March 2024.

Detailed explanation-2: -Public Provident Fund (PPF) It is considered a safe investment avenue as it is issued by the Central Government of India. You can claim a tax exemption of Rs. 1.5 lakh, each year, under Section 80C of the Income Tax Act. However, this scheme has a lock-in period of 15 years.

Detailed explanation-3: -Section 80C of the Income Tax Act of India is a clause that points to various expenditures and investments that are exempted from Income Tax. It allows for a maximum deduction of up to Rs. 1.5 lakh every year from an investor’s total taxable income.

Detailed explanation-4: -You can usually get a home loan that is 60 times your salary.

Detailed explanation-5: -Tax rebate under Section 87A 12, 500 if your gross taxable income, post deductions, is not in excess of Rs. 5 lakh. So, in case income tax payment amounts to Rs. 10, 000, Section 87A provides you with a rebate of that amount.