Money Matters

Taxation

Surinder Saini: I took a home loan of Rs 45 lakh to purchase a flat. But my home loan interest is way above the annual deduction limit of Rs 2 lakh. Is there a way to carry forward the excess payment and get a tax deduction when my annual interest dips below Rs 2 lakh?

Archit Gupta, Founder and CEO of ClearTax, replies:

An individual can claim a deduction up to Rs 2 lakh on home loan interest during a financial year if the house property is self-occupied. In this case, the interest deduction is computed as loss from house property and this can be adjusted against other incomes such as income from salary. Any loss from house property above Rs 2 lakh can be carried forward and set off against any income from the house property in the next eight assessment years. But when your annual interest on home loan falls below Rs 2 lakh, you will not be able to enjoy the benefit of full deduction.

Investment

Krishna Bassi: I had put Rs 2 lakh in a fixed deposit in a financial company through an agent. The payment was due on February 17, 2019, but the company did not return my money, neither did it respond to my e-mail messages. I am an 82-year-old widow with little knowledge about legal procedures. Kindly suggest what I should do.

Vikram Dalal, MD of Synergee Capital Services, replies:

Depositors can reach out to the Company Law Board and the Economic Offences Wing of the Central Bureau of Investigation. One can also approach the consumer court or a civil court. You can file a complaint under Section 12 of the Consumer Protection Act, 1986. However, the sort of action a depositor can take depends on the amount owed by the company. If the amount due exceeds Rs 1 lakh, an action for winding up could be considered after giving a statutory notice of 21 days. Although the process of winding up is fairly long, companies tend to settle their dues once a winding-up petition is filed. As taking the legal route is a time-consuming process, one should simultaneously approach the Securities and Exchange Board of India, the Reserve Bank of India and other associated regulators. If investors come to know that the company is cheating, they should file an FIR against it and take legal action.

Health Insurance

Ankit Rao: I am self-employed and a family floater plan was required for my wife and daughter. I generally smoke the hookah twice a day. But a customer care executive at the insurance company said I would not be considered a smoker as a person smoking at least eight cigarettes a day is defined as a smoker. Is that true? Will I be denied claims because of my smoking habit?

Sanjay Datta, Chief of Underwriting, Claims and Reinsurance at ICICI Lombard, replies:

Health insurance is a matter of good faith. Therefore, you should always disclose all your pre-existing diseases, medical conditions and habits, however insignificant they may seem to you. As underwriting guidelines and parameters depend on the company, what may seem acceptable to one insurer may not be accepted by another. If you have already purchased the plan, you can request the company to pass an endorsement to this effect. If it is an acceptable risk as per the company's guidelines, it may endorse your existing health policy and your claims will be covered after respective waiting periods.