Every day expenses are surely a burden to almost every living person in the planet. However, with rental income being exempted from certain taxes, you can save more money with housing loans as an opportunity to free yourself from paying more taxes than you should.
According to Economic Times, tax on rental income of education trust has finally gained some exemption from paying more taxes. The Bombay High Court has provided a new rule that the education trust generates income by giving hall and premises on rental. Therefore, in some parts of the world, rental income might be the best solution for you to save up on your money and have more to spend on your daily expenses.
The case in Mumbay entails that the revenue officer wished to impose a tax demand on the income yielded from rentals. However, the Court itself stated that the when an education trust is based on that certain profit, it will be absolved from taxes. Good sign, isn't it? This would tell us that rental income is actually a good way to do business and maximize your profits without government intervention.
According to The Hindu Business Line, Riya Bhattacharya, an investment professional working in Chennai, although rentals could give you more profit by not being imposed with taxes, it might defect your equity in the stock market. However, there is a remedy for this. Instead of just instilling your efforts on rental income, it would also be a good move to invest on equities when your profits yield desirable amounts. This way, you will not only be able to save on taxes, it would also increase your equity worth. Furthermore, taking a home loan would also be able to make you avail of the tax exemption on the interest payments made for such purposes.
Now that you know your way around saving your income from getting sliced bit by bit due to tax expenses, then this might just be the best remedy for you to yield a desirable income and yield more savings from interest payments and tax incomes.