Since home loan offers tax benefit and thus reduces your tax liability. You may invest your money in avenues which can fetch you better returns than the interest rates than the home loan interest that you will be paying (less the adjusted tax advantage).
You may look at putting your money in Equity MF / Debt MF depending upon your requirement for goals and risk appetite.
Thanks for the information.
Now I have 10 lakhs cash, is it better to buy a flat without loan or with loan. In which option I will save more money? I am in 20% income bracket and paying premium of 75000/year.
Dear Swamy, the principal benwefit ‘ll be limited to over al 1L Rs. which I think you have covered already. Regarfing the Interest benefit, you w’d have to show the rental income & then full interest with out any limit you can show.
For detailed calculation please check some prev. discussions here.
My CTC is 14 lakhs and my HRA is 21,000/month.I am staying in a independent house(Bangalore) and paying rent Rs 7000/month now.
I would like to buy a flat(Near to current house and office) for 15 lakhs and I will get rent of Rs 5000/month now.
1.I would like to stay in rented house by claiming HRA, and like pay EMI and show rental amount in my income. How much maximum I can claim towards principal/interest.
2.I have a flat in hyderabad and my parents(Senior citizens) are staying in that, I am not gettign any rent but I am paying EMI of Rs 5500/month . The balance loan amount is around 1.5 lakh.I like to transfer my property to my parents/brothers before buying new flat, so I can save some tax.
Please advise any drawbacks or any better suggestions in my planning?.
Dear Swamy,
Since home loan offers tax benefit and thus reduces your tax liability. You may invest your money in avenues which can fetch you better returns than the interest rates than the home loan interest that you will be paying (less the adjusted tax advantage).
You may look at putting your money in Equity MF / Debt MF depending upon your requirement for goals and risk appetite.
Ashish
Thanks for the information.
Now I have 10 lakhs cash, is it better to buy a flat without loan or with loan. In which option I will save more money? I am in 20% income bracket and paying premium of 75000/year.
Dear Swamy, the principal benwefit ‘ll be limited to over al 1L Rs. which I think you have covered already. Regarfing the Interest benefit, you w’d have to show the rental income & then full interest with out any limit you can show.
For detailed calculation please check some prev. discussions here.
Thanks
Ashal
My CTC is 14 lakhs and my HRA is 21,000/month.I am staying in a independent house(Bangalore) and paying rent Rs 7000/month now.
I would like to buy a flat(Near to current house and office) for 15 lakhs and I will get rent of Rs 5000/month now.
1.I would like to stay in rented house by claiming HRA, and like pay EMI and show rental amount in my income. How much maximum I can claim towards principal/interest.
2.I have a flat in hyderabad and my parents(Senior citizens) are staying in that, I am not gettign any rent but I am paying EMI of Rs 5500/month . The balance loan amount is around 1.5 lakh.I like to transfer my property to my parents/brothers before buying new flat, so I can save some tax.
Please advise any drawbacks or any better suggestions in my planning?.
Dear Swamy, what’s the query?
thanks
Ashal