POSTED BY July 17, 2014 11:10 pm COMMENTS (6)ON
I took SBI Maxgain Home Loan in 2009. I have been utilizing overdraft facility to maximum extent and reduced Interest out go considerably by parking surplus money in Overdraft account.
Now my interest out go is just around 1 Lakh per annum. My home loan interest rate is 10.25% . My query is regarding raise in exemption limit of income tax on Home Loan interest which is 2 Lakhs in recent budget.
Which one of below is beneficiary ?
1. I continue to park surplus amount in Over Draft SBI Max gain account. Pay an interest of around 1 Lakh and also pay around 30% extra Income Tax since my Home Loan Interest out go is less than 2 Lakhs.
2. Withdraw surplus amount from Over draft SBI Max Gain account. Invest in Fixed Deposit for 9% interest. This will increase my Home Loan Interest per annum to 2+ Lakhs and take advantage of paying less Income Tax.
Kindly get back to me in case of any queries.