Comment on Taxation Simplified

Akash, You are a full time trader,

But you are an individual right?? As an individual the slabs will still apply, it is a flat 30% only if you are trading as a company. So you get the benefit of tax slabs as an individual conducting trading business.

You can use the home loan to deduct your taxable income as per section 24 and section 80-C.
Your home loan EMI will have 2 components to it,
a. the principal you are paying back.
b. the interest you are paying.

Every year you can show upto Rs 1.5lks which you pay as interest as a loss on your books to reduce your taxable income under section 24.

Every year you can show upto Rs 1lks which you pay as principal as a deduction to reduce your taxable income under section 80C

If you want to know how much of your EMI is going for principal and how much as an interest, ask your bank for the home loan statement..

So you can take benefit of upto Rs 2.5lks of the EMI you have paid to reduce your taxable income.
Hopefully this clarifies..

Cheers..

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