Now that the Christmas and New Year celebrations are over, it is time to get back to the reality of everyday life. With the financial year drawing to a close, it is time for you to start planning your taxes. Being an honest tax paying citizen of the country, you must pay your taxes on time and file your tax returns honestly. But it does not mean that you cannot save on your taxes. There are various provisions under the Income Tax Act 1961, which allow you to claim deductions against various investments and expenses.
One such method of reducing your income tax liabilities is available through a bank loan you avail for purchasing a home or expand your business. Yes, there are various income tax rebates available to you if you use the money in a specified manner.
However, it is vital here to ponder over if Personal Loan for the specified use can entitle you the IT benefits? Let's find out below:
Personal Loan Tax Benefits
Personal Loans are extremely popular in the present times, with individuals in desperate need of money. You can use the funds availed through a Personal Loanfor any financial requirement that you may have. Though,the tax implications attached to Personal Loans are lesser-known but are extremely important to know.
As a Personal Loan is a form of borrowing, i.e., a liability; hence it is not added to your annual income at the time of filing of your income tax returns. But very few individuals know that when you avail of a Personal Loan such as TMB Personal Loan, there are various income tax benefits that you can enjoy.
Yes, by using a Personal Loan for specified expenses or investments, you can claim various tax rebates and deductions and bring down your income tax liabilities for a year.
If you are interested in availing Personal Loan tax benefits to reduce your income tax liability, then here are the various provisions which you must be aware of:
Personal Loan for home: When you avail of a Personal Loan and use it for certain expenses related to your home, you can claim income tax rebate against such expenses. Though to avail of these benefits, you must be the homeowner, and you should have also availed the Personal Loan. Here are the various ways in which you can reduce your tax liabilities if you have availed a Personal Loan:
Under Section 24B– If the Personal Loan that you have availed has been used for the construction of a newly purchased property, or the actual purchase of a property; then the interest paid for Personal Loan can be claimed as a deduction under Sec 24 (B) of the Income Tax Act 1961. There are certain conditions applicable to this rebate i.e.
In case the property on which the expense has been incurred is self-owned and self-occupied by you, then the maximum limit to the deduction that you can claim is Rs. 2 lakhs under Section 24 (B).
In case the property on which the expense was incurred has been rented out, then the entire interest amount paid as interest against the Personal Loan would be tax-deductible under Section 24 (B).
Under Sec 80C– If the money that you have availed as a Personal Loan has been used for home improvement or home renovation, then the principal amount that has been spent on the project can be claimed as a tax deduction. This deduction is available to you under Section 80C of the Income Tax Act, 1961, with the maximum deduction available going up to Rs. 1.5 Lakhs.
Personal Loan for business: When you are a self-employed professional or an independent businessman, you can claim deductions against your income tax liability if the Personal Loan has been used for your business purpose. In order to claim the income tax deduction, the money should have been used to acquire some machinery, tools, or other assets for the business. The interest paid for the Personal Loan in such cases can be recorded as an expense, thereby bringing down your net profit and thus reducing your income tax liability.
Personal Loan for the acquisition of assets: If the Personal Loanhas been used to acquire any assets like shares, mutual funds, jewellery, etc., then the interest cost of the Personal Loanwill be added to the cost of acquisition of the asset. Although such investments cannot be claimed to be tax-deductible expense, the addition of the interest expense to the cost of acquisition of the asset will help bring down the capital gains at the time of liquidation of the assets. Thereby, your overall income tax liability will be reduced when you sell-off that asset or investment.
To avail of the income tax benefits, you need to provide proper documentation evidence. The documents should connect the Personal Loan amount to the expenses against which you are claiming the deduction.
The approved list of documents that you will need to submit to the income tax department include,
Expense vouchers or invoices
Bank statements
Sanction letter
Bank certificate
The deduction against the Personal Loan interest expense will be available only as per the repayment schedule of the Personal Loan. This implies that the tax deduction will cease to be available as soon as the interest cost has been paid off.
By using these income tax deductions available, you can reduce your income tax liability significantly, thereby enhancing the benefits available with a Personal Loan. After all, you are getting the chance to manage your financial requirements as well as reduce your income tax liability at the same time.
UK-BASED Nanak Hotels recently acquired the 60-room Kings Court Hotel, a 17th-century property in Warwickshire, England, for £2.75 million. This is the first regional acquisition by the privately held firm led by British Indians Harpreet Singh Saluja and Karamvir Singh.
Nanak Hotels, which operates a UK property portfolio, plans to invest in the property's refurbishment and repositioning, according to a statement from Colliers International UK, which brokered the transaction.
“We’re excited to bring Kings Court Hotel into our portfolio as our first Warwickshire acquisition,” said Saluja. “It has a solid foundation and loyal customer base. We see potential to develop the hotel while preserving its heritage.”
The West Midlands hotel, on a 4.2-acre site between Alcester and Redditch, began as a 17th-century farmhouse and now operates as a hospitality business with public areas, event and conference facilities and wedding capacity for up to 130 guests.
The hotel’s previous owner said Kings Court had been central to their work for over 30 years.
“It’s been a privilege to grow it into what it is today,” the owner said. “As we retire, we’re pleased to see it pass to a new owner who shares our commitment to hospitality and has a vision for its future.”
“The sale of Kings Court Hotel drew strong interest due to its size, location and trading performance,” said Josh Sullivan and Peter Brunt of Colliers International UK. “We’re pleased to have completed the transaction with Nanak Hotels and look forward to seeing how they develop the asset.”
In February, UK-based Shiva Hotels, led by founder and CEO Rishi Sachdev, secured $372m (£289m) to renovate The BoTree in Marylebone, London. Separately, Indian tech firm Oyo announced a $62m (£48m), three-year plan to expand its UK hotel portfolio by acquiring inventory and securing leasehold and management contracts, supporting 1,000 jobs.
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PRIYA NAIR has been appointed as the CEO and managing director of Hindustan Unilever Ltd (HUL), effective from August 1. She will be the first woman to lead the company in its history.
The announcement was made by HUL on Thursday (10). Nair, who currently serves as president, Beauty & Wellbeing at Unilever, will take over the role from Rohit Jawa, who will step down on July 31 to pursue other interests.
She has been appointed for a five-year term and will also join the HUL board, subject to necessary approvals. She will continue to be a member of the Unilever Leadership Executive.
Nair began her career with HUL in 1995 and has held various roles across sales and marketing in the company’s Home Care, Beauty & Wellbeing, and Personal Care businesses.
Between 2014 and 2020, she served as executive director, Home Care and later as executive director, Beauty & Personal Care from 2020 to 2022. She then moved to a global role as the chief marketing officer for Beauty & Wellbeing at Unilever, and in 2023, was named president of the business.
Under her leadership, the Beauty & Wellbeing division has grown into a more than £10 billion global business covering hair care, skin care, prestige beauty, and health and wellbeing, including vitamins, minerals and supplements.
She has overseen brand building, innovation, revenue growth, digital transformation, and profit delivery.
Speaking on her appointment, HUL chairman Nitin Paranjpe said, “Priya has had an outstanding career in HUL and Unilever. I am certain that with her deep understanding of the Indian market and excellent track record, Priya will take HUL to the next level of performance.”
Nair’s appointment comes after Jawa’s two-year term, during which the company focused on volume-led growth. “On behalf of the Board of HUL, I would like to thank Rohit for leading the business through tough market conditions and strengthening its foundations for success,” Paranjpe added.
Over her 28-year career, Nair has built and managed several leading consumer brands. She is recognised for turning around underperforming businesses and leading cross-functional teams.
The Indian executive has also served as an independent director on the board of a publicly listed Indian company, a board member of the Advertising Standards Council of India (ASCI), and a member of several government-backed partnerships and industry bodies.
Nair currently lives in London with her husband and daughter.
(with inputs from PTI)
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The Canary Wharf business district including global financial institutions in London.
THE UK economy contracted unexpectedly in May, marking the second consecutive monthly decline, according to official data released on Friday. The figures present a challenge for the Labour government as it attempts to revive economic growth.
Gross domestic product fell by 0.1 per cent in May, following a 0.3 per cent contraction in April, the Office for National Statistics (ONS) said in a statement.
Economists had forecast a 0.1 per cent increase in GDP.
The data comes at a time when prime minister Keir Starmer's government is dealing with global challenges, including US tariffs and persistent inflation.
The Labour government’s fiscal strategy relies heavily on economic growth, particularly after recent reversals on welfare cuts and winter fuel payments for pensioners.
Finance minister Rachel Reeves described the figures as "disappointing" and said there was "more to do."
Labour has announced plans to reduce red tape and has unveiled a multi-billion pound investment programme aimed at the National Health Service and infrastructure to boost growth.
In separate data published by the ONS on Friday, UK exports to the United States increased by £0.3 billion in May. This followed a record fall in April when President Donald Trump's tariffs took effect.
"Growth is becoming incredibly difficult to achieve for the government," said Lindsay James, investment strategist at Quilter.
"The plans put in place so far are unlikely to move the needle in the absence of improving business and consumer sentiment in an environment of ongoing cost pressures," she added.
ONS director of economic statistics Liz McKeown said there were "notable falls in production and construction" which affected GDP in May.
She said the decline in production was led by "oil and gas extraction, car manufacturing and the often-erratic pharmaceutical industry."
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The bank's commitment to green lending reflects focus on sustainability (Photo: Getty Images)
BANKING major State Bank of India (UK) has cut interest rates on its buy-to-let mortgage products to help landlords reduce borrowing costs.
The bank said the rate cuts would help landlords invest in rental properties and meet growing demand for rental homes across the UK.
For the Standard Product Range, interest rates have been reduced by up to 35 basis points across all Loan-to-Value (LTV) tiers for five-year fixed-term products. In the SPV Product Range, rates have been cut by up to 40 basis points. Additionally, a flat fee has been introduced on larger loans for limited companies, aiming to simplify the lending process, a statement said.
The Houses in multiple occupation (HMO) product range has seen significant improvements. Rates have been reduced by up to 90 basis points on two-year fixed products and up to 50 basis points on five-year fixed products. Non-green properties now benefit from a flat rate of 5.15 per cent for five-year terms.
Fees for five-year products have also been lowered to 1.50 per cent for 50 per cent and 65 per cent LTV. Furthermore, green properties receive an additional discount of 10 basis points. Also, pricing for Multi-Unit Freehold Blocks (MUFB) has been brought in line with the HMO product range, offering similar rate reductions and terms.
Abhishek Sahay, chief business officer at SBI UK, said the bank wanted to support landlords with better lending deals.
"We understand the importance of service standards and have added capacity to our underwriting team to process applications in a timely manner," he said. "We recognise the crucial role landlords play in the UK housing ecosystem, and these rate reductions are designed to help them thrive in a dynamic market."
He added that the bank's ongoing commitment to green lending reflects focus on sustainability and reduction in the carbon footprint of the housing sector.
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Starlink will next need to acquire spectrum from the government, build ground infrastructure, and carry out testing and trials to meet the agreed security requirements. (Photo: Reuters)
INDIA’s space regulator on Wednesday granted Starlink a licence to begin commercial operations in the country, removing the final regulatory barrier for the satellite internet provider.
The company, led by Elon Musk, has been waiting since 2022 for licences to start operations in India. It received an initial approval last month from India’s telecom ministry and was waiting for clearance from the space regulator.
The licence, issued by the Indian National Space Promotion and Authorization Centre (IN-SPACe), is valid for five years.
Earlier on Wednesday, Reuters reported, citing sources, that Starlink had secured the licence from IN-SPACe.
Starlink is now the third company to receive approval to enter the Indian satellite communications market. India has previously cleared applications from Eutelsat’s OneWeb and Reliance Jio.
The company will next need to acquire spectrum from the government, build ground infrastructure, and carry out testing and trials to meet the agreed security requirements.
Musk and Reliance Jio’s Mukesh Ambani had disagreed for several months over how spectrum should be allocated for satellite services. The Indian government later supported Musk’s position that spectrum should be assigned, not auctioned.