Dear All, please advise me on whether tax exemption is available under salary income for property insurance. If available, under which head can we avail the benefit?
Case study: A person with a housing loan and finance institution-covered property under insurance. The insurance amount premium of Rs 87,287/- was converted into EMI for the housing loan tenure of 20 years. The person is paying an insurance premium in EMI of Rs 9,024/- per annum (Principal Rs 1,846/- + interest Rs 7,178/-).
If tax exemption is available under the salary head, then to what extent can exemption be availed on both components, i.e., interest on insurance premium and principal repayment of insurance premium?
I would highly appreciate it if anyone could provide expert advice.
Regards, Swapnil Patil
From India, Suri
Acknowledge(0)
Amend(0)
1Case study: A person with a housing loan and finance institution-covered property under insurance. The insurance amount premium of Rs 87,287/- was converted into EMI for the housing loan tenure of 20 years. The person is paying an insurance premium in EMI of Rs 9,024/- per annum (Principal Rs 1,846/- + interest Rs 7,178/-).
If tax exemption is available under the salary head, then to what extent can exemption be availed on both components, i.e., interest on insurance premium and principal repayment of insurance premium?
I would highly appreciate it if anyone could provide expert advice.
Regards, Swapnil Patil
From India, Suri
Acknowledge(0)Amend(0)
Dear Sir/Madam,
The exemption/deduction under the Income Head House Property and Chapter VI A (80C, etc.) is not available on interest and premium of insurance. You have to forgo the same. For details of deduction and income tax on salary income, please visit [Indian Labour Laws & Shram Suvidha Simplified](http://www.shramsamadhan.com).
From India, Kolkata
Acknowledge(1)
Amend(0)
The exemption/deduction under the Income Head House Property and Chapter VI A (80C, etc.) is not available on interest and premium of insurance. You have to forgo the same. For details of deduction and income tax on salary income, please visit [Indian Labour Laws & Shram Suvidha Simplified](http://www.shramsamadhan.com).
From India, Kolkata
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
SALARY CALCULATOR & INCOME TAX.zip
Income tax declaration & Salary structre 2012-13.xls