Three most important investments which as far as possible should be taken advantage of by all individual tax payers in particular are:
(a) Investment in a residential house property;
(b) Investment upto a maximum of Rs 1 lakh so as to enjoy the tax deduction u/s 80C / 80CCC;
(c) Investment upto Rs.10,000/- in a mediclaim medical insurance policy, popularly known as Mediclaim Policy.
If you want to achieve the highest score of tax planning with reference to your investments, then one must make it a point to buy one residential house property for self-occupation especially when you do not own a residential property in your name. As per the provisions contained in section 24 of the Income Tax Act, 1961, a deduction equal to Rs 1,50,000 is permissible for every individual in respect of interest on loan for residential self-occupied house property. This interest on loan is allowed as a deduction irrespective of the person from whom you take the loan. Hence, even if you take a loan not from a banker but from a relative or your spouse and make the payment of the interest still then the deduction in respect of interest on loan would be allowed. The maximum amount of deduction as per section 24 in respect of interest on loan for residential house property is Rs 1,50,000 per year.
