Are you ready for the income tax season? It’s never easy to approach the subject taxes.
Tax season can be stressful, but as i’ve learned over the past couple of years, it’s a time of year that is much easier to navigate if you’re well organizes.
It really helps to head into the season with a sense of what expenses you can deduct on your individual return.
With the income tax return deadline just around the corner, it is the season where everyone try to maximise their income tax deduction.
Well here, we are going to highlight on the Housing loan interest rebate.
The housing loan interest rebate had implemented since 2010. Obviously, this is not for everyone and not for all the home owner.
Check out here the criteria for the entitlement:
1. Malaysia citizen and resident in Malaysia;
2. Purchase of residential property is limited to one (1) unit;
3. Sale and Purchase Agreement signed from 10 March 2009 to 31 December 2010; and
4. That residential property must not be rented out.**
** The condition only said it must not rented out. In this case, property under construction should be qualified.
Do you meet the following conditions or criteria?
If you do, Congratulations!
You may claim the housing loan interest incurred as personal tax relief up to RM10,000 per year for 3 consecutive years of assessment from the year of assessment in which the loan interest is first expended. In total, you may claim up to RM30,000 (RM10,000 per year x 3 years of assessment).
If the property is jointly purchased by more than 1 person, all of them are entitled for the relief restricted to maximum of RM10,000.
For example, Person A claims RM2,000, Person B claims RM3,000 and Person C claims RM5,000. Total claims must not exceed RM10,000. The key point is, you must have incurred at least RM10,000 interest cost on the housing loan.
Keep your documents ready for verification in case they ask for it.