POSTED BY December 9, 2014 6:33 pm COMMENTS (2)ON
Dear Financial Experts,
I need you advise here
I took a home loan of Rs 20 Lakhs on March, 2012 and I pay EMI of Rs. 20305 for 240 months from IDBI bank @ 10.25%, present outstanding is about Rs. 18.9 Lakhs.
Presently, I am in Germany (works with an IT company) and could save some money which I would want to put in most hassle free profitable deal as I return to India by Feb, 2015.
The big question is should I repay the entire loan amount or invest Rs. 20 lakhs in FD
I cannot invest in market as my job is very demanding, neither have the aptitude for the same.
I do not want to buy another property as these consumes lots of time and energy, which I would want to put in my job as that gives me better monetary return, opportunities and satisfaction.
My present India Salary is ~18 Lakhs per annum and I do not have any other source of income like house rent, agriculture etc.
I am availing income tax deduction of Rs. 1.5 Lakhs on Interest under section 24, however I do not avail any deduction on 80C from the home loan principal as I am already loaded with few LIC pension plans, PPF and monthly PF deductions.
I will not be able to avail section 24 for long as my loan amount is not too high and as time progress interest amount will come down and eventually I will end up availing less than Rs. 1.5 Lakhs.
Please suggest, I still have about 5 months to make a decision as I will repay only next financial year that is 1st April, 2015 as I am claiming the benefit this year and hence will not close out before 31st Mar, 2014 being an honest tax payer.