Budget 2017: Seven ways to save more in this financial year
Synopsis
HRA exemption and interest deduction on housing loan can be claimed simultaneously. Hotel accommodation given by the employer for the first 15 days when someone moves to a new city on transfer is not taxable.
It is that time of the year again when you start re-planning and re-thinking about your savings as the Budget has been announced. Finance Minister Arun Jaitley has promised while announcing the Union Budget 2017 on Wednesday that in the upcoming financial year people will be able to save more.
But one would want to go a step ahead and save more in the ongoing financial year.
Here are seven ways through which you can save more:
## Joint home loans – In case you have purchased a new house along with your spouse and also if you are paying the home loan together, then you are entitled to deduction of ₹ 2 – 2.5 lakh. You can include your working son or daughter while paying off the loan and in that case, all three can avail deduction.
## Provident Fund – PPF withdrawals have a block-in period of 5 years. In case you are not aware of this then you must know that a loan on the accumulated balance can be obtained for certain purposes. However, the limits may vary.
## House rent – Under Section 80GG an individual can claim deduction for rent paid. One can claim even if the employer does not give HRA. But there’s one condition – he/she does not own a house and nor does the spouse or the child. A maximum of ₹ 5000 per month can be claimed.
## Perk – Hotel accommodation given by the employer for the first 15 days when someone moves to a new city on transfer is not taxable.
## Travel – Salaried employees can avail LTC exemption for two domestic journeys taken in a span of 4 calendar years. The current span is on since January 2014.
## Transport – The most important fact about this is one need not submit expense proof for transport allowance exemption. On top of this, if you are incurring expenses during your official travel, then the office can reimburse you and that will not be taxable.
## House Rent Allowance and Loan – HRA exemption and interest deduction on housing loan can be claimed simultaneously. For this to happen, one has to make sure that the house bought with the loan is in a different city from the place of work.