2 min
05 April 2025
When filing your taxes in India, knowing which expenses you can claim as deductions can save you money. Section 36 of the Income Tax Act offers various deductions for businesses and professionals. This important section helps reduce your taxable income through legitimate business expenses.
Section 36 allows deductions for expenses that are fully used for business purposes. These include insurance premiums, employee bonuses, interest on loans, and many others. Understanding Section 36 can help you plan your finances better and lower your tax burden legally.
The Indian tax system aims to be fair to taxpayers. Section 36 recognises that certain costs are necessary to run a business. By letting you deduct these costs, the law helps businesses grow and succeed.
This article will explain the key expenses allowed under Section 36 and how you can claim them. We will break down each type of expense in simple terms.
Section 36 of Income Tax Act: Expenses allowed for deduction
Section 36 lists specific expenses that businesses can claim as deductions. These expenses must be incurred wholly for business purposes during the previous financial year. The Income Tax Department allows these deductions to support business operations and growth.
Section 36 deductions directly reduce your taxable income. This means less tax to pay and more money staying in your business. For example, if your business pays insurance premiums or interest on loans, these amounts can be deducted.
The law requires proper documentation for all Section 36 claims. Keep detailed records of all expenses you plan to claim. This helps during tax assessment and prevents issues later.
Expenses allowable as deduction
Section 36 allows several key expenses as deductions. These include insurance premiums on business assets, employee-related expenses like bonuses and commissions, and interest on capital borrowed for business.
Other allowable expenses include contributions to employee benefit funds like provident funds and gratuity funds. Bad debts that cannot be recovered can also be written off under Section 36.
Financial institutions get special provisions for bad debt reserves. Section 36 also covers unique cases like expenses for family planning among employees and certain transactions taxes.
Insurance premium payment
Insurance premiums paid on business assets qualify for deduction under Section 36. This includes insurance for inventory, machinery, buildings, and other business property. The premium must be paid during the relevant financial year.
Section 36 allows deduction for insurance on the life of cattle used in business. This is particularly helpful for dairy businesses and agricultural operations. The insurance must be directly related to business activities.
For partnerships, Section 36 permits deduction of premiums paid on the life of partners. However, this applies only if the insurance is for business purposes and not personal protection.
Bonus or commission paid to employees
Section 36 allows businesses to deduct bonuses and commissions paid to employees. These payments must be part of the employment terms and not voluntary gifts. They should be paid during the financial year or before filing the tax return.
Reasonable bonus amounts based on performance or profit-sharing are fully deductible. Section 36 supports rewarding employees while reducing the company's tax burden. This creates a win-win situation for employers and employees.
The law requires that bonus payments must not be excessive or unreasonable. Section 36 aims to prevent misuse by ensuring bonuses represent genuine compensation for work performed.
Interest on borrowed capital
Interest paid on loans taken for business purposes qualifies for deduction under Section 36. This applies to all types of business loans, including bank loans, business credit cards, and other forms of financing.
Section 36 allows interest deduction even before the business begins operating. This pre-commencement interest can be claimed in five equal instalments starting from the year the business launches.
For property acquisition, Section 36 permits interest deduction from the year the property is acquired or construction is completed. Looking for affordable home loans? Check your eligibility for Bajaj Housing Finance Home Loan with interest rates starting at 7.99%* p.a.. Simply enter your mobile number and verify with OTP to see your personalised offers.
Discount on Zero Coupon Bonds (ZCB)
Section 36 allows companies to claim the discount on Zero Coupon Bonds as a deduction. These bonds are issued at a discount to their face value, with the difference being the implied interest.
The discount amount can be claimed proportionately over the life of the bond. Section 36 recognises this as a form of interest expense for the issuing company. This helps businesses manage their cash flows better.
Financial institutions and infrastructure companies commonly use this provision. Section 36 supports these entities in raising capital for long-term projects without immediate interest payments.
Contribution to recognised provident fund
Employers can deduct contributions made to recognised provident funds under Section 36. This includes contributions to the Employees' Provident Fund (EPF) for their staff. The deduction applies to the employer's contribution portion.
Section 36 allows these deductions to encourage retirement savings. The contribution must be made before the due date for filing tax returns. This ensures timely compliance with both provident fund and tax regulations.
The law sets certain limits on the amount that can be deducted. Section 36 ensures that contributions are reasonable and aligned with employment terms.
Contribution to National Pension Fund (NPS)
Employers contributing to their employees' National Pension Scheme accounts can claim deductions under Section 36. This encourages businesses to support retirement planning for their workforce.
Section 36 allows up to 10% of the employee's salary as a deductible contribution. This includes basic salary and dearness allowance but excludes other allowances. The contribution must be made within the financial year or before filing taxes.
This provision helps create long-term financial security for employees. Section 36 thus supports both employers and employees in planning for retirement needs.
Contribution to approved gratuity fund
Employers can deduct contributions to approved gratuity funds under Section 36. These funds provide financial security to employees after retirement or when leaving the organisation. The gratuity fund must be approved by the Income Tax Commissioner.
Section 36 requires that contributions be reasonable and based on actuarial valuation. This ensures the fund has adequate resources to meet future obligations. The contribution must be made before filing the tax return.
This provision helps businesses manage their gratuity liabilities efficiently. Section 36 supports systematic funding of these future employee benefits while providing immediate tax advantages.
Looking to manage your finances better? Check your eligibility for a Bajaj Housing Finance Home Loan by sharing your mobile number and completing OTP verification. You may already qualify for a loan up to Rs. 15 crore* with interest rates starting at just 7.99%* p.a..
Allowances regarding dead animals used in business
Section 36 provides a unique deduction for businesses using animals that die during operations. This applies mainly to farming, dairy, and transportation businesses that rely on animals.
When an animal used for business dies, Section 36 allows writing off its remaining value. This helps businesses recover their investment and replace the animal. The write-off must be properly documented with proof of the animal's death.
This provision recognises the special needs of agricultural businesses. Section 36 acknowledges that animal loss is a genuine business expense deserving tax relief.
Bad debts written off
Businesses can deduct bad debts that are written off under Section 36. These are amounts owed to the business that cannot be recovered. The debt must have been included in income in current or previous years.
Section 36 requires proper documentation showing attempts to recover the debt. The write-off must be recorded in the account books during the financial year. This ensures transparency in claiming the deduction.
This provision helps businesses manage credit risk. Section 36 provides relief when customers or clients fail to pay, preventing businesses from paying tax on income they never received.
Provision for bad debts in case of banks and financial institutions
Banks and financial institutions receive special treatment under Section 36 for bad debt provisions. They can deduct provisions made for potentially bad debts, not just actual write-offs. This recognises their unique business model of lending.
Section 36 sets specific limits for these provisions based on the institution type. Rural branches of banks get higher provision allowances. This supports lending in underserved areas while acknowledging higher risks.
These provisions help maintain the financial health of lending institutions. Section 36 balances tax relief with prudent financial management standards for the banking sector.
Expenses for promoting family planning amongst employees
Companies can deduct expenses for promoting family planning among employees under Section 36. This includes costs of educational programs, contraceptives, and medical facilities. The expenses must be for the benefit of employees.
Section 36 allows revenue expenses to be deducted fully in the year they occur. Capital expenses can be deducted in five equal annual instalments. This encourages businesses to support family planning initiatives.
This provision aligns with national population policies. Section 36 creates tax incentives for companies to participate in social welfare programs benefiting their workforce.
Expenses incurred by corporation
Section 36 allows various expenses incurred by corporations for business purposes. These include statutory expenses required by law and operational costs essential for business. The expenses must be wholly for business purposes.
Professional fees, legal expenses, and regulatory compliance costs qualify under Section 36. These are necessary for proper business operation and governance. The expenses must be reasonable and properly documented.
This broad provision covers many day-to-day business costs. Section 36 ensures businesses are not taxed on money spent to comply with laws or maintain operations.
Banking cash transaction tax
Section 36 allows deduction of banking cash transaction tax paid by businesses. This tax applies to certain high-value cash transactions through banks. The deduction is available in the year the tax is paid.
Though this tax is not currently active, Section 36 still contains this provision. It demonstrates how the tax law adapts to various transaction taxes. Businesses that paid this tax previously could claim it as a deduction.
This provision shows how Section 36 evolves with changing tax regulations. It ensures businesses are not doubly taxed on their transactions.
Payment to credit guarantee fund trust for SSIs
Contributions to the Credit Guarantee Fund Trust for Small Industries can be deducted under Section 36. This trust provides guarantees for loans to small businesses. The contribution must be made during the financial year.
Section 36 supports the small business ecosystem through this provision. It encourages financial institutions to participate in credit guarantee schemes. This ultimately helps small businesses access credit more easily.
This deduction represents the tax law's support for small industry development. Section 36 recognises the importance of credit guarantees in fostering entrepreneurship.
Amount paid as Securities Transaction Tax (STT)
Section 36 allows deduction of Securities Transaction Tax paid on business transactions. This applies to businesses dealing in securities as part of their normal operations. The STT must be paid during the financial year.
The deduction is available only when the income from such transactions is business income. Section 36 does not allow this deduction when the income is classified as capital gains. This distinction is important for proper tax planning.
This provision helps businesses in the financial sector manage their tax liability. Section 36 ensures that transaction taxes do not excessively burden legitimate business operations.
Amount paid as Commodities Transaction Tax (CTT)
Businesses can deduct Commodities Transaction Tax paid under Section 36. This applies to transactions in commodity derivatives. The tax must be paid during the relevant financial year.
Section 36 allows this deduction only for business-related transactions. Personal investment transactions do not qualify. The income from these transactions must be business income, not speculative gains.
This provision supports businesses that use commodity markets for legitimate purposes. Section 36 helps reduce the overall tax burden on commodity-based businesses.
Expenditure incurred by co-operative society for purchase of sugarcane
Section 36 offers a special deduction for cooperative societies purchasing sugarcane. The purchase must be according to government price directives. This supports the agricultural sector, especially sugar production.
The deduction applies to the difference between the purchase price and the government's announced price. Section 36 recognises this as a legitimate business expense. This helps cooperative societies manage price fluctuations.
This provision shows how Section 36 accommodates industry-specific needs. It acknowledges the unique operating environment of agricultural cooperatives and provides appropriate tax relief.
Marked to market loss
Section 36 allows deduction of marked-to-market losses in certain cases. These are paper losses from valuing assets at current market prices. The provision mainly applies to financial instruments and foreign exchange transactions.
For this deduction, the loss must be in line with income computation and disclosure standards. Section 36 ensures that accounting standards and tax laws are aligned. This creates consistency in financial reporting.
This provision recognises economic reality over historical costs. Section 36 acknowledges that market value changes affect business financial health and should be reflected in tax calculations.
Summary of deductions allowed under Section 36
Section 36 offers numerous deductions that significantly reduce taxable business income. These deductions cover a wide range of business expenses from employee benefits to financial transactions.
Here's a summary of key deductions allowed:
These deductions help businesses accurately calculate their taxable income. Section 36 ensures that only net profits are taxed, not gross revenue. This makes the tax system fairer and more conducive to business growth.
When planning your finances, consider how Section 36 deductions can help your business. Similarly, planning your home purchase with Bajaj Housing Finance Home Loan can help you benefit from tax deductions on home loan interest under Section 24. Check your eligibility instantly by entering your mobile number and verifying it with an OTP.
How to apply for Bajaj Housing Finance Home Loan
Applying for a Bajaj Housing Finance Home Loan is simple and convenient. Follow these easy steps:
Eligibility criteria to get home loan from Bajaj Finserv
To qualify for a Bajaj Housing Finance Home Loan, you need to meet these eligibility requirements:
Conclusion: Managing tax deductions and home financing
Understanding Section 36 of the Income Tax Act helps businesses maximise legitimate tax deductions. When combined with smart home financing options like Bajaj Housing Finance Home Loan, you can optimise both your business and personal finances.
Bajaj Finserv offers home loans with interest rates starting at just 7.99%* p.a.. These competitive rates, combined with flexible repayment options, make homeownership more affordable. The interest paid on home loans also qualifies for tax deductions under Section 24 of the Income Tax Act.
The top-up loan facility from Bajaj Finserv provides additional funds up to Rs. 1 crore for various needs. This can be particularly useful for business owners who need extra capital while enjoying the benefits of Section 36 deductions.
Key benefits of Bajaj Housing Finance Home Loan include:
Loan amounts up to Rs. 15 crore* based on eligibility
Quick approval within 48 hours*
Flexible tenure up to 32 years
No foreclosure fees for floating rate loans
Special rates for salaried professionals and doctors
Ready to own your dream home while managing your taxes effectively? Check your home loan eligibility now. Enter your mobile number and verify with OTP to discover your personalied loan offers. Your dream home and optimal tax planning are just a click away!
*Terms and conditions apply
Check also:
Section 36 allows deductions for expenses that are fully used for business purposes. These include insurance premiums, employee bonuses, interest on loans, and many others. Understanding Section 36 can help you plan your finances better and lower your tax burden legally.
The Indian tax system aims to be fair to taxpayers. Section 36 recognises that certain costs are necessary to run a business. By letting you deduct these costs, the law helps businesses grow and succeed.
This article will explain the key expenses allowed under Section 36 and how you can claim them. We will break down each type of expense in simple terms.
Section 36 of Income Tax Act: Expenses allowed for deduction
Section 36 lists specific expenses that businesses can claim as deductions. These expenses must be incurred wholly for business purposes during the previous financial year. The Income Tax Department allows these deductions to support business operations and growth.
Section 36 deductions directly reduce your taxable income. This means less tax to pay and more money staying in your business. For example, if your business pays insurance premiums or interest on loans, these amounts can be deducted.
The law requires proper documentation for all Section 36 claims. Keep detailed records of all expenses you plan to claim. This helps during tax assessment and prevents issues later.
Expenses allowable as deduction
Section 36 allows several key expenses as deductions. These include insurance premiums on business assets, employee-related expenses like bonuses and commissions, and interest on capital borrowed for business.
Other allowable expenses include contributions to employee benefit funds like provident funds and gratuity funds. Bad debts that cannot be recovered can also be written off under Section 36.
Financial institutions get special provisions for bad debt reserves. Section 36 also covers unique cases like expenses for family planning among employees and certain transactions taxes.
Insurance premium payment
Insurance premiums paid on business assets qualify for deduction under Section 36. This includes insurance for inventory, machinery, buildings, and other business property. The premium must be paid during the relevant financial year.
Section 36 allows deduction for insurance on the life of cattle used in business. This is particularly helpful for dairy businesses and agricultural operations. The insurance must be directly related to business activities.
For partnerships, Section 36 permits deduction of premiums paid on the life of partners. However, this applies only if the insurance is for business purposes and not personal protection.
Bonus or commission paid to employees
Section 36 allows businesses to deduct bonuses and commissions paid to employees. These payments must be part of the employment terms and not voluntary gifts. They should be paid during the financial year or before filing the tax return.
Reasonable bonus amounts based on performance or profit-sharing are fully deductible. Section 36 supports rewarding employees while reducing the company's tax burden. This creates a win-win situation for employers and employees.
The law requires that bonus payments must not be excessive or unreasonable. Section 36 aims to prevent misuse by ensuring bonuses represent genuine compensation for work performed.
Interest on borrowed capital
Interest paid on loans taken for business purposes qualifies for deduction under Section 36. This applies to all types of business loans, including bank loans, business credit cards, and other forms of financing.
Section 36 allows interest deduction even before the business begins operating. This pre-commencement interest can be claimed in five equal instalments starting from the year the business launches.
For property acquisition, Section 36 permits interest deduction from the year the property is acquired or construction is completed. Looking for affordable home loans? Check your eligibility for Bajaj Housing Finance Home Loan with interest rates starting at 7.99%* p.a.. Simply enter your mobile number and verify with OTP to see your personalised offers.
Discount on Zero Coupon Bonds (ZCB)
Section 36 allows companies to claim the discount on Zero Coupon Bonds as a deduction. These bonds are issued at a discount to their face value, with the difference being the implied interest.
The discount amount can be claimed proportionately over the life of the bond. Section 36 recognises this as a form of interest expense for the issuing company. This helps businesses manage their cash flows better.
Financial institutions and infrastructure companies commonly use this provision. Section 36 supports these entities in raising capital for long-term projects without immediate interest payments.
Contribution to recognised provident fund
Employers can deduct contributions made to recognised provident funds under Section 36. This includes contributions to the Employees' Provident Fund (EPF) for their staff. The deduction applies to the employer's contribution portion.
Section 36 allows these deductions to encourage retirement savings. The contribution must be made before the due date for filing tax returns. This ensures timely compliance with both provident fund and tax regulations.
The law sets certain limits on the amount that can be deducted. Section 36 ensures that contributions are reasonable and aligned with employment terms.
Contribution to National Pension Fund (NPS)
Employers contributing to their employees' National Pension Scheme accounts can claim deductions under Section 36. This encourages businesses to support retirement planning for their workforce.
Section 36 allows up to 10% of the employee's salary as a deductible contribution. This includes basic salary and dearness allowance but excludes other allowances. The contribution must be made within the financial year or before filing taxes.
This provision helps create long-term financial security for employees. Section 36 thus supports both employers and employees in planning for retirement needs.
Contribution to approved gratuity fund
Employers can deduct contributions to approved gratuity funds under Section 36. These funds provide financial security to employees after retirement or when leaving the organisation. The gratuity fund must be approved by the Income Tax Commissioner.
Section 36 requires that contributions be reasonable and based on actuarial valuation. This ensures the fund has adequate resources to meet future obligations. The contribution must be made before filing the tax return.
This provision helps businesses manage their gratuity liabilities efficiently. Section 36 supports systematic funding of these future employee benefits while providing immediate tax advantages.
Looking to manage your finances better? Check your eligibility for a Bajaj Housing Finance Home Loan by sharing your mobile number and completing OTP verification. You may already qualify for a loan up to Rs. 15 crore* with interest rates starting at just 7.99%* p.a..
Allowances regarding dead animals used in business
Section 36 provides a unique deduction for businesses using animals that die during operations. This applies mainly to farming, dairy, and transportation businesses that rely on animals.
When an animal used for business dies, Section 36 allows writing off its remaining value. This helps businesses recover their investment and replace the animal. The write-off must be properly documented with proof of the animal's death.
This provision recognises the special needs of agricultural businesses. Section 36 acknowledges that animal loss is a genuine business expense deserving tax relief.
Bad debts written off
Businesses can deduct bad debts that are written off under Section 36. These are amounts owed to the business that cannot be recovered. The debt must have been included in income in current or previous years.
Section 36 requires proper documentation showing attempts to recover the debt. The write-off must be recorded in the account books during the financial year. This ensures transparency in claiming the deduction.
This provision helps businesses manage credit risk. Section 36 provides relief when customers or clients fail to pay, preventing businesses from paying tax on income they never received.
Provision for bad debts in case of banks and financial institutions
Banks and financial institutions receive special treatment under Section 36 for bad debt provisions. They can deduct provisions made for potentially bad debts, not just actual write-offs. This recognises their unique business model of lending.
Section 36 sets specific limits for these provisions based on the institution type. Rural branches of banks get higher provision allowances. This supports lending in underserved areas while acknowledging higher risks.
These provisions help maintain the financial health of lending institutions. Section 36 balances tax relief with prudent financial management standards for the banking sector.
Expenses for promoting family planning amongst employees
Companies can deduct expenses for promoting family planning among employees under Section 36. This includes costs of educational programs, contraceptives, and medical facilities. The expenses must be for the benefit of employees.
Section 36 allows revenue expenses to be deducted fully in the year they occur. Capital expenses can be deducted in five equal annual instalments. This encourages businesses to support family planning initiatives.
This provision aligns with national population policies. Section 36 creates tax incentives for companies to participate in social welfare programs benefiting their workforce.
Expenses incurred by corporation
Section 36 allows various expenses incurred by corporations for business purposes. These include statutory expenses required by law and operational costs essential for business. The expenses must be wholly for business purposes.
Professional fees, legal expenses, and regulatory compliance costs qualify under Section 36. These are necessary for proper business operation and governance. The expenses must be reasonable and properly documented.
This broad provision covers many day-to-day business costs. Section 36 ensures businesses are not taxed on money spent to comply with laws or maintain operations.
Banking cash transaction tax
Section 36 allows deduction of banking cash transaction tax paid by businesses. This tax applies to certain high-value cash transactions through banks. The deduction is available in the year the tax is paid.
Though this tax is not currently active, Section 36 still contains this provision. It demonstrates how the tax law adapts to various transaction taxes. Businesses that paid this tax previously could claim it as a deduction.
This provision shows how Section 36 evolves with changing tax regulations. It ensures businesses are not doubly taxed on their transactions.
Payment to credit guarantee fund trust for SSIs
Contributions to the Credit Guarantee Fund Trust for Small Industries can be deducted under Section 36. This trust provides guarantees for loans to small businesses. The contribution must be made during the financial year.
Section 36 supports the small business ecosystem through this provision. It encourages financial institutions to participate in credit guarantee schemes. This ultimately helps small businesses access credit more easily.
This deduction represents the tax law's support for small industry development. Section 36 recognises the importance of credit guarantees in fostering entrepreneurship.
Amount paid as Securities Transaction Tax (STT)
Section 36 allows deduction of Securities Transaction Tax paid on business transactions. This applies to businesses dealing in securities as part of their normal operations. The STT must be paid during the financial year.
The deduction is available only when the income from such transactions is business income. Section 36 does not allow this deduction when the income is classified as capital gains. This distinction is important for proper tax planning.
This provision helps businesses in the financial sector manage their tax liability. Section 36 ensures that transaction taxes do not excessively burden legitimate business operations.
Amount paid as Commodities Transaction Tax (CTT)
Businesses can deduct Commodities Transaction Tax paid under Section 36. This applies to transactions in commodity derivatives. The tax must be paid during the relevant financial year.
Section 36 allows this deduction only for business-related transactions. Personal investment transactions do not qualify. The income from these transactions must be business income, not speculative gains.
This provision supports businesses that use commodity markets for legitimate purposes. Section 36 helps reduce the overall tax burden on commodity-based businesses.
Expenditure incurred by co-operative society for purchase of sugarcane
Section 36 offers a special deduction for cooperative societies purchasing sugarcane. The purchase must be according to government price directives. This supports the agricultural sector, especially sugar production.
The deduction applies to the difference between the purchase price and the government's announced price. Section 36 recognises this as a legitimate business expense. This helps cooperative societies manage price fluctuations.
This provision shows how Section 36 accommodates industry-specific needs. It acknowledges the unique operating environment of agricultural cooperatives and provides appropriate tax relief.
Marked to market loss
Section 36 allows deduction of marked-to-market losses in certain cases. These are paper losses from valuing assets at current market prices. The provision mainly applies to financial instruments and foreign exchange transactions.
For this deduction, the loss must be in line with income computation and disclosure standards. Section 36 ensures that accounting standards and tax laws are aligned. This creates consistency in financial reporting.
This provision recognises economic reality over historical costs. Section 36 acknowledges that market value changes affect business financial health and should be reflected in tax calculations.
Summary of deductions allowed under Section 36
Section 36 offers numerous deductions that significantly reduce taxable business income. These deductions cover a wide range of business expenses from employee benefits to financial transactions.
Here's a summary of key deductions allowed:
| Expense category | Description | Key conditions |
| Insurance premiums | Premiums on business assets and inventory | Must be for business purpose only |
| Employee benefits | Bonuses, commissions, provident fund, gratuity | Should be as per employment terms |
| Interest payments | Interest on borrowed capital | Loan must be for business purposes |
| Bad debts | Uncollectible business debts | Must be written off in books |
| Special provisions | Family planning, dead animals, marked-to-market losses | Specific conditions apply to each |
| Transaction taxes | STT, CTT, banking cash transaction tax | Must be paid during the financial year |
These deductions help businesses accurately calculate their taxable income. Section 36 ensures that only net profits are taxed, not gross revenue. This makes the tax system fairer and more conducive to business growth.
When planning your finances, consider how Section 36 deductions can help your business. Similarly, planning your home purchase with Bajaj Housing Finance Home Loan can help you benefit from tax deductions on home loan interest under Section 24. Check your eligibility instantly by entering your mobile number and verifying it with an OTP.
How to apply for Bajaj Housing Finance Home Loan
Applying for a Bajaj Housing Finance Home Loan is simple and convenient. Follow these easy steps:
- Click on the 'APPLY' button on the home loan page.
- Enter your basic details including full name, mobile number, and employment type.
- Select your preferred loan type - fresh home loan, balance transfer, or top-up loan.
- Verify your phone number with OTP and provide additional details like monthly income and required loan amount.
- Submit your date of birth, PAN number, and other requested details based on your occupation.
- Click 'SUBMIT' to complete your application. A Bajaj Finserv representative will contact you for the next steps.
Eligibility criteria to get home loan from Bajaj Finserv
To qualify for a Bajaj Housing Finance Home Loan, you need to meet these eligibility requirements:
- Nationality: You must be an Indian citizen residing in India. This basic requirement ensures compliance with lending regulations.
- Age: Salaried applicants should be between 23-67 years, while self-employed professionals should be between 23-70 years. The upper age limit is considered at loan maturity.
- CIBIL Score: A score of 725 or higher is ideal for home loan approval. A good credit score helps secure better home loan interest rates.
- Occupation: You must be a salaried employee, professional individual, or self-employed person. Your occupation affects the documents required for home loan processing.
- Income: You should have a stable income source to ensure repayment capacity. Higher income may qualify you for a larger loan amount.
- Property: The property you wish to purchase should be legally clear and approved. Bajaj Finserv has 5,000+ pre-approved projects for faster processing.
Conclusion: Managing tax deductions and home financing
Understanding Section 36 of the Income Tax Act helps businesses maximise legitimate tax deductions. When combined with smart home financing options like Bajaj Housing Finance Home Loan, you can optimise both your business and personal finances.
Bajaj Finserv offers home loans with interest rates starting at just 7.99%* p.a.. These competitive rates, combined with flexible repayment options, make homeownership more affordable. The interest paid on home loans also qualifies for tax deductions under Section 24 of the Income Tax Act.
The top-up loan facility from Bajaj Finserv provides additional funds up to Rs. 1 crore for various needs. This can be particularly useful for business owners who need extra capital while enjoying the benefits of Section 36 deductions.
Key benefits of Bajaj Housing Finance Home Loan include:
Loan amounts up to Rs. 15 crore* based on eligibility
Quick approval within 48 hours*
Flexible tenure up to 32 years
No foreclosure fees for floating rate loans
Special rates for salaried professionals and doctors
Ready to own your dream home while managing your taxes effectively? Check your home loan eligibility now. Enter your mobile number and verify with OTP to discover your personalied loan offers. Your dream home and optimal tax planning are just a click away!
*Terms and conditions apply
Check also:
| Income Tax Login | Income Tax E Filing |
| Income Tax Slab | Tax Concept |
| Calculate Tax | New Tax Regime Income Tax Slabs |
| New Tax Regime Calculator | New Tax Slab |
| Short Term Capital Gain Tax | Long Term Capital Gain Tax |
