LO­TUS RE­VAMP

India Today - - GLASS HOUSE -

In poll-mode Ut­tar Pradesh, lo­cal RSS and BJP lead­ers had been go­ing into a panic over an elec­toral back­lash if there was no respite from the cur­rency crunch. But their prayers have been an­swered. The RBI has re­port­edly flown in Rs 5,000 crore worth of high-value cur­rency notes to the cap­i­tal, Lucknow. The cash ar­rived days ahead of PM Naren­dra Modi’s De­cem­ber 19 rally in Kan­pur, his sixth in UP, and seems to have tem­po­rar­ily eased the crunch. Which ex­plains why ‘he­li­copter money’ is the new buzz­word in the state’s power cor­ri­dors. prin­ci­pal pay­ment is el­i­gi­ble for de­duc­tion of up to Rs 1.5 lakh un­der Sec­tion 80C. The ef­fec­tive in­ter­est rate goes down after claim­ing the de­duc­tion.

For ex­am­ple, a Rs 25 lakh loan (@10 per cent in­ter­est for 20 years) will have an an­nual in­ter­est outgo of Rs 2.50 lakh. Ad­justed for the Rs 2 lakh tax ben­e­fit un­der Sec 24, the ef­fec­tive cost of in­ter­est be­comes 7.5 per cent for an in­di­vid­ual in the 30 per cent tax bracket. But, if your an­nual in­ter­est outgo is over Rs 2 lakh, it makes sense for you to re­pay loan as you won’t get any tax break on the in­ter­est paid over and above Rs 2 lakh.

How­ever, in the case of JP na­tional pres­i­dent a sec­ond home, there is no

Amit Shah wants to limit on the de­duc­tion on ex­pand the reach of mou

in­ter­est amount. You can th­piece Ka­mal San­desh,

deduct the en­tire in­ter­est pub­lished in 13 lan­guages in

paid from your in­come. So, 18 states, from the present

the tax ad­van­tage is huge. 8,00,000 sub­scribers to 5 mil­lion by next De­cem­ber. The mag­a­zine’s for­mat has changed, all pages are now in colour and there are new sec­tions de­voted to the Modi govern­ment’s achieve­ments, or­gan­i­sa­tional ac­tiv­i­ties etc.

B

IM­AGES BAZAAR

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