PROPERTY DEDUCTIONS ON INCOME TAX OF INDIVIDUALS AND THE ORDER OF THEIR RECEPTION

Abstract

Taxpayers of income tax of individuals (NDFL) have privileges in the form of property deduction. Property tax deduction is fiscal law provided by the legislation of the Russian Federation for the people buying or selling dwelling. The order of its granting is provided by Article 220 of Chapter 23 of the Tax Code of the Russian Federation. In other words, tax deduction is exemption of individuals' incomes received from taxation. This deduction is provided exclusively for incomes taxed according to the rate of 13 %. The Tax Code of the Russian Federation defines two ways of getting of property tax deduction. The first way is through the employer, i.e. taxpayer's wage will not be taxed till the moment of full payment of the sum of the deduction. The second way is through tax inspection after filling tax declaration 3-NDFL and provision of necessary documents: certificate about individual's incomes in the form 2-NDFL from the employer, a copy of the document confirming the right for dwelling and a copy of the payment document. The taxpayer should also write the application for reception of property deduction. After office check (for three months) the property deduction will be returned to the taxpayer non-cash in the amount of NDFL withheld at the place of work. The remained sum of property deduction will be transferred to the next year (years). It depends on income of the tax payer.