I want to pay part of my home loan to the bank. What is the tax benefit available? more
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Tax benefit is available for the interest on loan amount paid during financial year with a limit announced for an assessment year, but not the principal. Thus any one pays any lump-sum amount to reduce his principal amount, his interest / EMI will be recalculated only, but no tax relief. more
Jul 30
I paid 40% of the loan amount to reduce the Principal amount. If the principal was 10 lakhs then by paying 4 lakhs, the principal becomes 6 lakhs. Now this 4 lakh paid is tax free? This is what I want to know. more
Jul 30
Under 80C (if you do not have PF/ PPF investments), the Principal Repaid amount which can be claimed out of your 4.0lacs is Rs 1.5 lacs. Just type in the total amount you have paid/ invested in the 80C column (say 4.0lacs plus PF etc), the ITR will automatically consider Rs 1.5lacs. more
Jul 31
I have pre-paid housing loan three times in last 20 years. If you are working then it does not translate into any significant benefits. Loan repayment gets counted for 80C benefit but If your are working you are already contributing towards EPF and would be having an insurance policy-Term plan or otherwise. There is hardly any margin left for claiming out of the pre-payment. The interest paid at the time of prepayment in the last month also qualifies for deduction. Decision to prepay the housing loan is determined more by the need to save on interest cost if your own money cannot be deployed to get higher returns. Even if you are expecting property to appreciate at a rate lower than the interest rate, again it is better to prepay and improve your holding capacity. more
Jul 30
Yes,very detailed reply.Than you. more
Jul 30
