Is it a good idea to close my Home loan good idea considering tax saving ?

POSTED BY Deepak Rajput ON January 29, 2014 4:54 pm COMMENTS (5)

Hi Sir.

Please consider below scenario.

I have taken the home loan of 13 lac. Rs after 2 years. Now i have closed the home loan with help of money from my family. In that year i know i will get tax exemption on principal and interest it will around 1 lac and 1.5 lac. but home loan closing amount is 13 lac.
my exemption in tax is 2.5 lac for current year but the home loan is of 13 lac.

So closing of  home loan  is good idea.

5 replies on this article “Is it a good idea to close my Home loan good idea considering tax saving ?”

  1. Deepak Rajput says:

    Thanks sir,

    I need to submit the document in office i will i prove this.

    As i have already closed the loan.

  2. ashalanshu says:

    Dear Deepak, please treat the payment from your mother as loan to you. Pay interest on this home loan to your mother and you can still claim home loan interest benefit.

    Thanks

    Ashal

  3. Deepak Rajput says:

    Hi Sir,

    I want to know like my loan amount was 13 lac and the tax benefit which i will be getting approx 2.5 lac per till the loan is continued.

    Is there any extra tax benefit if the loan is closed early.

    This was my mother money which she had received when my father expired.

  4. ashalanshu says:

    Dear Deepak, if you have closed the loan already, how can you reverse the situation if we say that do not close the loan?

    From whom did you take money to close the loan?

    Thanks

    Ashal

  5. divya.advisor says:

    It is always a good idea to close a loan as soon as possible. Get a break up of principle and interest that you would have paid had you continued your loan. to get an idea in to years how much has your principle decreased?

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