Home loan tax concessions are available only after house is constructed and possession taken. If house is sold while under construction, no tax benefit available. Conversely, if home loan closed anytime earlier but possession still taken, benefits are available for interest paid.
Interest: No deductions for EMIs or Pre-EMIs for interest till the construction is completed. Say construction completed during financial year (FY) 2018-19. Then all interest paid till 31 March 2018 is totaled and can be claimed in equal installments over 5 years from FY 2018-19 onwards along with that year’s interest, subject to a total limit of Rs 2 Lakhs per year. Balance is carried forward for next 7 consecutive years. However, if construction period was longer than 5 years from end of the FY in which loan was first taken, limit of Rs 2 Lakhs gets reduced to Rs 30,000 per year only.
Principal: Counted as part of Section 80C.June 27th, 2018
Many of the officers, serving or retired, have had some bad experience with military hospitals or ECHS and feel a private medical insurance will be better for them for a small annual premium to be paid.
We do not agree with this due to the following:
· A private hospital is a profit-making venture. You can never be sure that the treatment being suggested is a genuine medical requirement by your body or a profit-making move by the hospital. This point is SERIOUS.
· For medical insurance businesses, claims paid is profits reduced – don’t forget this. Fauji hospitals have no such ‘incentive’.
· The premiums will increase hugely as the age advances.
· Medical Insurance has no OPD facility available in general. If you do take OPD facility, premium goes up substantially.
· ECHS has very good systems and procedures – most of us don’t know about it and are thus not able to use it optimally.
Please understand that the basic aim of life insurance is to cater for financial needs of your surviving dependents in case something happens to you as bread winner of the house.
In case you do not have anybody who is financially dependent on you and your earnings, you do not need ANY life insurance.
A situation could be that your wife is financially dependent on you now but after you, your family pension, income from other sources as also from other assets like mutual funds, will or can still comfortably take care of her, you don’t need to take any life insurance cover.
On the other hand, if you have your children and/or parents dependent on you and their lifestyle or future requirements would be in jeopardy if something happens to you, please take adequate life insurance cover for an appropriate duration.June 27th, 2018