Income Tax Saving Tips: Time has come to do tax saving plan for the financial year 2022-23. Salaried people, especially those working in the private sector, have also started submitting tax saving plans in the offices. We – You invest in different schemes to save income tax. It has been seen many times that even after investing in many places, the tax burden does not reduce.
Having a home loan helps in saving huge amount of tax. We can also save tax with education loan. But if there is no home loan or education loan then how to save tax, this problem is often seen.
Tax experts say that tax exemption can also be availed on the basis of personal loan. But only in certain circumstances the benefit of tax exemption on personal loan can be availed.
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Ways to Save Tax on Personal Loan
By the way, there is no provision in Income Tax to take exemption on personal loan. But for this, by adopting other methods, tax can be availed on personal loan as well. If you have taken a personal loan for business, for building or buying a house, then you can take advantage of tax exemption on it.
Discount on purchase of property
If you have taken a personal loan for the purchase of any property, then you can also take advantage of tax exemption here. If you have bought jewelery or non-residential property or have invested in the stock market, then you can get tax exemption. Keep in mind that tax exemption will be available only on the interest and not on the principal amount of the loan.
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personal loan for business
If you have taken a personal loan to start a business or to expand the business, then you can show the interest as an expense. You can claim tax exemption on expenses. This will reduce your tax liability. You can claim any amount by showing it as interest expense.
Personal Loan for Home Repair
Everyone knows that there are two types of tax exemption benefits available on home loan. One can avail tax benefit on the interest and the other on the principal. If you have taken a personal loan to get the house repaired or have bought a residential property, then you can take advantage of tax exemption. On this you can take advantage of exemption on interest under section 24 of the Income Tax Act. You can avail tax exemption of up to Rs 2 lakh while staying at home. If the house is given on rent, then how much tax exemption can be claimed.
Tags: Auto and personal loan, income tax, Income tax exemption
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