Home Loan Query

POSTED BY Sunny ON April 13, 2013 9:51 am COMMENTS (11)


I have seaached the forum but couldnt find the specific query which I have so posting a new question.

I stay in Mumbai with my parents and I will be buying a house in Surat where my Uncle and his family will reside.


Flat Cost 30,00,000

Loan : 24,00,000

CTC  :9,00,000

No other loan I have.

Query :

-Can I claim exeption under 80c? As I will not be residing there.

-If Yes, then can I apply for rent exemption because I reside with My parents?  If No, 1.5 lac for 24c is applicable or can I claim more?


Bascially my query stems from the fact that I want to decide whether I should go for 15 year loan period or 20 year to maximize my tax saving. When I look at the break-up for these tenure the interest remain same more or less same on Y0Y but in 15 years tenure the princple componenet increases.


Please help.




11 replies on this article “Home Loan Query”

  1. Sunny says:

    Thank you all 🙂

  2. Dear Ravi, if you are going to prepay anyway, it’s advisable to go for 15Y term so that interest impact is lower.



  3. Dear Sunny, you can receive gift from your parents or anyother to prepay with out any penalty.



  4. Dear Sunny, HDFC us not a bank & thus not under RBI. Please do note, prepayment penalty clauses have been wavied for non Banking finance cos. also like HDFC by the regulator NHB.



    1. Sunny says:

      My bad, But I do remember non banking body asked them to waive the pre payment charges. But taking gift from payment and paying will be considered as self income or not?

  5. Dear Sunny, why are you focussing too much on loan term in terms of tax saving? Are you really saving tax through your home loan? think over it.



    1. Sunny says:

      Ashal that’s an afterthought. I decide to buy and now thinking over tax saving hence.

  6. Sunny says:

    Also as it is HDFC, as per RBI there are no pre payment charges but we have to have self source of income. Can I pre pay by taking gift from my parents? Is it allowed?

  7. Sunny says:

    Thanks Guys. I think I got my answer here, Just one more confirmation 80 c still remain has limit of 1,00,000 limit after last budget, right?

    Also Vijay why do you think 15 year loan is better?

  8. Dear sunny, the moment you start repaying your home loan, you can claim 80C benefit on it. Regarding the HRA benefit in paralle to home loan benefit, yes you can claim both.

    if you want to avail more than 1.5L Rs. self occupied limit of interest, please declare your rental income also from the house in question.



  9. Vijay says:

    Yes you can claim 80C exemption
    Yes you can claim HRA if you are paying rent in Mumbai
    You claim max 1.5 L only since it will be considered self occupied (1st House). No Limit exemption on interest component is only applicable when it is rented out and you show rental income.

    My suggestion you are better off with 15 Years.

    Vijay H

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