POSTED BY August 9, 2012 4:43 pm COMMENTS (2)
ONDear Sir,
I had barowed 12 lacs home loan from SBI during March 2010. at the rate of 10.5% intrest
for 15years period.
Now I want to repay 5 lacs from my savings. Can I do so ?
I am getting IT exmption of 30,000/- per anum . ( I am in 20% IT slab )
and also I am getting 96000/- per anum return on investment from my property.
Thanks
R. Sivakumar
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Dear Siva Kumar, Yes you can repay 5L Rs. in your home loan. The repayment ‘ll bring down your outstanding Loan amount & accordingly your interest part ‘ll also come down. Thus your tax saving ‘ll also be lower than your current 30K Rs. How do you want to move ahead ‘ll be your choice. If you can earn a higher return if you opt to invest these 5L Rs. you should invest else pay the loan.
Thanks
Ashal
please see my answers in the inserted text (vij >> )
Now I want to repay 5 lacs from my savings. Can I do so ?
vij >> yes, you should be able to do so.
I am getting IT exmption of 30,000/- per anum . ( I am in 20% IT slab )
and also I am getting 96000/- per anum return on investment from my property.
vij >> IT exemption or the rent from property has nothing to do with repayment. If after repayment, the interest portion of the EMI gets reduced, your taxable income may change.