tax benefit on Home loan repayment?

Question

I have taken a home loan of 22 Lacs and I need to repay it in 20 years. The Rate of Interest is 7.75%. My EMI starts from this month September.

What are my advantages in the tax savings for this year over the repayment of loan ?

Exactly how much I will save in the 80cc section (1 Lac cap), so that I can plan to invest the remaining amount.

Thanks for your time and consideration.

-Prem

Answer 1

you can take tax rebate under two section
one u/s 24 deduction of interest on loan (you have took loan of rs 22 lakhs @7.75% = 170500 will be interest for this year but you can take deduction only and up to 150000rs u/s section 24 of house property head)


second deduction can be avail u/s 80C for repayment of principal amount of loan and maximum limit under this section is 100000 rs so you can take deduction up to 100000/- not exceed. you can also take deduction as whole amout of repayment of loan as deduction of rs 100000/-

so your total deduction can be 150000(interest) + 100000(loan repay) = 2500000


hank you

Answer 2

Savings is Sept thru DEC = 4 months, 4/12 =.33% of 7.75 X 22/20
The loss comes in with the time value of money. Today's value verse future worth!

Answer 3

Yes. Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Interest repayment of Rs. 1,50,000 p.a. can get you a tax saving upto about Rs. 50,490 p.a. Moreover, you can get added tax benefits under Sec 80 C on repayment of principal amount upto Rs. 1,00,000 p.a. that can further reduce your tax liability by about Rs. 33,660 p.a.

Answer 4

hi prem,
i a ca student so i wish to give my deliberations to ur ques.

when u make payments of ur emi s , u will get deduction of the principal portion of ur emi's that u have paid during the year.

but please note that u/s 80c u can get max deduction of rs 100000/- only .

feel free to write me for any queries at [e-mail]

Answer 5

Consult an accountant