Home Loan Repayment and Section 80c

Principal and Interest are the two components of Home Loan Installments. For income tax both are deductible but for section 80c only principal portion is deductible. For the purpose of deduction under section 80c one point must be noted that the home loan repayment is included in the limit of section 80c Rs 100000. The benefits of under section 80c home loan repayment is only for owner of  house property not for commercial property. This facility should only be taken for construction  in new house property or purchase a house property. This scheme should not be for repair, alternation, renovation, addition in houses. Due to this provision our government can give the boost to the housing sector. For deduction under section 80c stamp duty, registration fee and other expenses for the property are also eligible.

TDS Rate for contactor

TDS Rate for Contractor is 1% in the case of individuals an 2% in the case of person other than individual and HUF. It can be noted that no TDS needs to deducted if the payment is for less than 30000 however if it is for 75000 in aggregate then TDS needs to be deducted at the appropriate TDS Rates. Thus TDS on contractor needs to be deducted.