Loans Can Save Tax !
This time of the year, we all are on the look out for means and ways to save that amount of money which gets deducted as tax. But if we have planned ourselves well during the year these three months should not be a burden. There are various investments which one can make to get a tax rebate. Let us look at how loans can help us save tax. Yes, although a loan is termed as a liability one can still avail the benefits from a loan.
Let us see how…Most of us would own a home and to finance that we take a home loan. As you would be aware your home loan is eligible for tax benefits under the Income Tax Act. Tax benefits can be claimed on both the principal and interest components of the home loan as per the Income Tax Act, 1961. Under Section 24(b) , the borrower who has taken the loan either to build a house or buy one gets the benefit of these deductions. These tax benefits under Section 24 and deduction under section 80C of the Income Tax Act can be claimed only if all the payments are made by the borrower. To claim the tax benefits one has to make (Equated Monthly Installments) EMI payments regularly. The lender, that is all home finance companies and banks usually, issue a provisional certificate at the start of the year. This certificate is based on the EMI payable in the financial year, with the break-up of the interest and principal paid.
Following is how you can get your tax benefit, for example Mr Rao has taken a home loan for buying a property. The interest on the loan taken is deductible upto Rs 1, 50,000 for a financial year only if the following conditions are met by him.
-The loan should be taken on or after April 1, 1999 for buying or building a house.
-From the end of the financial year in which the funds were borrowed the property (built/bought) should be completed within 3 years.
-If he extends the loan, the interest is payable in respect of the funds taken either for building or buying the property. Even if he refinances the principle amount outstanding under an earlier loan taken for building or buying a house he gets the benefit.
- In case Mr Rao cannot fulfill the above conditions then the interest on the borrowed funds are deductible up to Rs30,000.But the following conditions have to be met:-
- The funds should be borrowed before April 1, 1999 either for buying, building, reconstructing or renewal of the property.
-Funds should be borrowed on or after April 1, 1999 for reconstructing, repairs or renewals of the house.
- If the funds are borrowed on or after April 1, 1999, but the construction is not completed within 3 years from the end of the year, in which the funds are borrowed.
Other than the above benefits, under section 80C the principal repayment of the loan/funds borrowed, he is also eligible for deduction of upto Rs 100,000 in a financial year.
Besides availing a home loan one can also take a personal loan and invest the funds in various schemes where you can save tax. Like investing in PPF’s , Tax saving bonds, Mutual funds and various investment options. If you do not have the funds to invest for tax rebate, a personal loan can help you. So, as seen above a home loan or personal loan can help you plan your tax savings. Make sure you avail of all the benefits of a home loan which are the rebate and deduction. Always plan ahead of time for availing a tax rebate and put to use the benefits you get from your loans.
Courtesy: Deal4Loans
Showing posts with label India IT 2009. Show all posts
Showing posts with label India IT 2009. Show all posts
Saturday, February 28, 2009
Thursday, February 5, 2009
Good News India IT - India will still grow in 2009!
India's IT industry will show "strong resilience" in spite of the current economic climate, with spending projected to grow 14.1 percent this year.
According to a Springboard Research report released Tuesday, the Indian IT market will not be as severely affected by the downturn as economies in North America, Europe and Asia-Pacific markets such as Japan and Korea.
In fact, IT spending in India will still expand by 14.1 percent in 2009, albeit at a slower rate than the 18.1 percent growth it clocked last year, the research firm predicted.
Verticals such as retails and real estate will see the largest cuts in IT budgets, Springboard noted, while telecommunications will see some growth from the anticipated arrival of 3G this year.
After a series of delays, India is expected to conduct its first 3G spectrum auction this year, though the country's Cabinet last week said a ministerial panel is currently looking to resolve several related issues, such as deciding on the base auction price.
However, Mahanagar Telephone Nigam Ltd. (MTNL) and Bharat Sanchar Nigam Ltd. (BSNL), which are both India state-owned enterprises or Public Sector Undertakings (PSUs), were given 3G spectrum last year ahead of private telecommunication services providers. Both operators will be required to pay the same license fee when the auction is finalized.
MTNL recently launched its 3G mobile services in selected areas in New Delhi.
Not as affected
Government initiatives to bolster economic growth, increased spending on public security and national defense, as well as IT initiatives in rural India, will pave the way for new technology, Springboard said.
"With the economic crisis expected to further worsen, we will see IT spending affected in India--although not to the same degree as in North America, Europe and other Asia-Pacific markets like Japan, Australia and Korea", said Manish Bahl, research manager at Springboard.
"[India] had delivered impressive growth and profits to both leading multinational and domestic vendors last year, and for many of these vendors, their Indian revenues grew more than 50 percent in 2008," Bahl said.
According to the analyst, local enterprises will focus more on their core business in a bid to build specialization. This will increase their dependence on technology to reduce operational expenditure.
"Albeit in a slow pace, SMBs (small and midsize businesses) will also play their part to drive the market and this is well supported by the changing attitude of Indian companies to view IT as an investment," Bahl noted.
Springboard expects the economic downturn to "trigger a new kind of competition", driving businesses to closely focus on returns on investment calculations, improve their planning and deepen the involvement of IT vendors.
"While major multinational vendors continue to view India as a critical growth market, we expect other U.S.-based firms to amplify their resource influx into the region and set up special teams to focus only on emerging markets such as India," Bahl said.
The top 10 trends Springboard believes will shape India's IT market this year:
1. Arrival of 3G will unlock enormous opportunities for IT vendors.
2. Cost concerns will drive key focus on IT infrastructure consolidation.
3. Economic pressures will drive SMBs toward outsourcing and software-as-a-service.
4. Startups and smaller businesses will become more important accounts for IT vendors.
5. Virtualization will gain traction in medium- and large-sized enterprises.
6. IT outsourcing will be seen as a catalyst to HR (human resource) retention and cost reductions during this economic downturn.
7. The media and entertainment industry will transform further with new technologies.
8. Online advertising markets to gain momentum with the emergence of niche social networking sites and regional portals. 9. The public sector will buoy IT spending.
10. Green IT will be fueled by cost-efficiency benefits.
Courtesy: zdnet News
According to a Springboard Research report released Tuesday, the Indian IT market will not be as severely affected by the downturn as economies in North America, Europe and Asia-Pacific markets such as Japan and Korea.
In fact, IT spending in India will still expand by 14.1 percent in 2009, albeit at a slower rate than the 18.1 percent growth it clocked last year, the research firm predicted.
Verticals such as retails and real estate will see the largest cuts in IT budgets, Springboard noted, while telecommunications will see some growth from the anticipated arrival of 3G this year.
After a series of delays, India is expected to conduct its first 3G spectrum auction this year, though the country's Cabinet last week said a ministerial panel is currently looking to resolve several related issues, such as deciding on the base auction price.
However, Mahanagar Telephone Nigam Ltd. (MTNL) and Bharat Sanchar Nigam Ltd. (BSNL), which are both India state-owned enterprises or Public Sector Undertakings (PSUs), were given 3G spectrum last year ahead of private telecommunication services providers. Both operators will be required to pay the same license fee when the auction is finalized.
MTNL recently launched its 3G mobile services in selected areas in New Delhi.
Not as affected
Government initiatives to bolster economic growth, increased spending on public security and national defense, as well as IT initiatives in rural India, will pave the way for new technology, Springboard said.
"With the economic crisis expected to further worsen, we will see IT spending affected in India--although not to the same degree as in North America, Europe and other Asia-Pacific markets like Japan, Australia and Korea", said Manish Bahl, research manager at Springboard.
"[India] had delivered impressive growth and profits to both leading multinational and domestic vendors last year, and for many of these vendors, their Indian revenues grew more than 50 percent in 2008," Bahl said.
According to the analyst, local enterprises will focus more on their core business in a bid to build specialization. This will increase their dependence on technology to reduce operational expenditure.
"Albeit in a slow pace, SMBs (small and midsize businesses) will also play their part to drive the market and this is well supported by the changing attitude of Indian companies to view IT as an investment," Bahl noted.
Springboard expects the economic downturn to "trigger a new kind of competition", driving businesses to closely focus on returns on investment calculations, improve their planning and deepen the involvement of IT vendors.
"While major multinational vendors continue to view India as a critical growth market, we expect other U.S.-based firms to amplify their resource influx into the region and set up special teams to focus only on emerging markets such as India," Bahl said.
The top 10 trends Springboard believes will shape India's IT market this year:
1. Arrival of 3G will unlock enormous opportunities for IT vendors.
2. Cost concerns will drive key focus on IT infrastructure consolidation.
3. Economic pressures will drive SMBs toward outsourcing and software-as-a-service.
4. Startups and smaller businesses will become more important accounts for IT vendors.
5. Virtualization will gain traction in medium- and large-sized enterprises.
6. IT outsourcing will be seen as a catalyst to HR (human resource) retention and cost reductions during this economic downturn.
7. The media and entertainment industry will transform further with new technologies.
8. Online advertising markets to gain momentum with the emergence of niche social networking sites and regional portals. 9. The public sector will buoy IT spending.
10. Green IT will be fueled by cost-efficiency benefits.
Courtesy: zdnet News
Subscribe to:
Posts (Atom)
