Income Tax Calculation for Interest on Housing Loan and Deduction u/s 80C with illustration

One Computation of Taxable Salary and allowances, Deduction for Interest on Housing Loan and Deduction u/s 80C.

Mr. X, a Central Govt. Officers in Delhi, is receiving Basic Pay Rs.23,720, grade Pay Rs.7,600, DA at prescribed rates, transport allowances @ Rs.3200+DA thereon, and HRA 30% of basic pay + grade pay (though living in his own house). His date of increment is Ist July. The following are other particulars of his income. Compute his taxable income and tax payable, for A.Y.2015-16.

Authority: IT Circular issued by CBDT on 1.12.2015

House Building Advance Interest Rates.

No.5(3)-B(PD)/2012

Government of India

Ministry of Finance

Department of Economic Affairs

(Budget Division)

 Room No. 263-B, North Block,

 New Delhi dated the 3rd January, 2013.

Office Memorandum

        The undersigned is directed to state that the rates of interest on advances and loans given to Government employees for construction/purchase of houses/flats during 2012-13 i.e. 1st April, 2012 to 31st March, 2013 and until further orders will be as under:-

Slab                                       Interest Rate  percent per annum

 Advance upto Rs. 50,000/-        6.00

 Advance uto Rs. 1,50,000/-       7.50

 Advance upto  Rs. 500,000/-      9.00

 Advance upto  Rs. 7,50,000/-     9.50

          Ministry of Urban Development is requested to issue separate O.M. at their level on the above issue.

 This issues with the approval of Flon'bie Finance Minister.

 Sd/-

 (A.K. Bhatnagar)

 Under Secretary (Budget)

 Source:http://urbanindia.nic.in/writereaddata/office%20orders/568.pdf