Tax Saving Tips

Yes, donations to registered NGOs or orphanages in India can provide tax benefits under Section 80G of the Income Tax Act. But the income tax act gives different deductions. Some donations can be deducted in full, while others allow a 50% deduction.

Hi

In terms of your situation, there are number of factors you can consider for tax saving and financial planning. Both you and your wife, as co-owners can claim the tax deductions individually and doubling the tax benefit.

Under section 24B you can claim the deduction up to Rs. 2 lakh on interest paid and Under section 80C you can claim Rs. 1.5 lakh on principal. Choosing different banks won’t result in direct rise in your tax savings. As it provides additional advantages and better interest rates. Under Section 80D, your wife is eligible to deduct the premiums paid for their health insurance coverage from her taxes.

In the end, just remember to take advantage of the deductions available under sections 80C and 24B to maximize the tax benefits of your home loan.