Pre maturity of Home loan Vs Investments

POSTED BY kaps ON April 22, 2014 7:42 pm ONE COMMENT

Hi Manish

I have 3 queries-:

1) I come under 30% tax bracket (Home loan benefit approx rs 150000) & have a Home loan of Amt Rs 1990000, outstanding Rs 1660000, at 10.25 %. Should I prefer making prepayments to my Home loan or should I rather make new Investments?

2) Please advice as to which is better — Liquid funds Vs Auto Sweep Accounts , considering the tax implications in both.

3) Procedure to pay advance tax on interest income of Bank accounts?




One reply on this article “Pre maturity of Home loan Vs Investments”

  1. ashalanshu says:

    Dear Kaps, prepayment of home loan has 2 aspects. Emotional aspect as early as possible. Financial aspect. Do not prepay if you can earn a better long term return from the prepayment money.

    On taxation count if holding period is less than 1Y, both options are same.

    Interest from saving bank accounts is tax free upto 10000 Rs. in a FY as per section 80TTA. If your interest from SB account is more than 10K, you can pay your advance tax online either from your netbanking portal or from income tax official site.



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