Buying home

Buying a home is a great expense for anyone, and an exciting prospect! However, It can lead to a bigger dent in your pocket because of the taxes involved. These days the tax rates on those properties which are for investment purposes increasing at a steady pace.

People getting House Rent allowance from their companies can choose to pay the rent to their family members, who own the house, and show the relavent receipts to the company and claim their house rent allowance.
House rent allowance of those people are taxed who don’t pay any rent to anyone. However, if one claims to pay the house rent allowance to his family member, his House Rent Allowance will not be taxed, or will result in a lower tax rate if the family member to which the tax is paid is also earning.

Buying a home can also be very smartly shown as a property investment cum company expense. While paying the tax, you can show that all the properties you have bought are for the accommodation of family members of the family. Thus you can show the expense as the need of the company to accommodate its workers, and reduce the income tax on the property.
Thus, by buying the house, you are making a property investment, but you will show it as a company expense.