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Q. I am a State government employee earning ₹60,000 per month and haven’t opted for any tax saving scheme (except those made compulsory by government such as NPS; am also not interested in other tax-saving schemes). My wife is also an employee of a State government PSU earning ₹80,000 a month.
She hasn’t opted for tax-saving schemes either. We are interested in buying an independent house (within ₹80 lakhs). But the problem regards taking a home loan; my wife will not be getting HRA which will be ₹20,000 per month as we are living in rented house.
Is it better to take home loan only on my salary; and, by saving some money on my wife’s income repay some amount yearly, or is it better to take home loan jointly? My wife can save tax by taking home loan but she will lose more by not getting HRA. Also, we are not really interested in insurance or mutual fund schemes. Kindly advise.
A. By applying for a home loan as joint owner-cum-applicant, you can each claim a deduction up to ₹3.5 lakh from your total income. Up to ₹1.5 lakh by way of principal repayment and up to ₹2 lakh by way of interest repayment. HRA exemption cannot be claimed by your wife.
Q. I am having a Senior Citizens Savings Scheme deposit with the post office. Annual interest from the deposit is less than ₹50,000. So Form 15H need not be submitted. But post office staff insist on submitting the form; otherwise, the system will deduct tax, they say. Kindly advise on the matter.
A. TDS is not required to be deducted by banks, co-operative societies and post office if the interest payable to such senior citizens is less than ₹50,000 in one assessment year. Irrespective of submitting Form 15H or not, TDS deduction does not apply. You may raise a complaint with the respective authority in the Post Office regarding this issue.
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