Understanding The Tax Benefit on Home Loan Interest

Most of us took home loan for purchasing our dream house and it is a very good tax saving instrument. There is a lot of confusion about the tax benefit on interest on home loan among people and in companies also.

I have experience in my previous and current company (with old payroll vendor) that they allow tax benefit only on one home loan and up to 1.5 lacks. So if you have more amount for tax benefit (i.e. Interest on a second home loan etc.) you have to file return to get back the paid tax.

5 ways to payoff home loan early

It is every ones dream to own a house and taking home loan to fulfill this dream is the most preferred way for most of them. But till you doesn't pay off your home loan house is not yours. So it’s also important to pay off the home loan early to get the full ownership of the house.

Let’s see how we can payoff the home loan early.

1. Opt for lesser tenure

Now these days some home loan lenders giving loan for 25 yrs tenure. Mostly people Opts for long tenure since long tenure reduces the EMI amount. Doesn't fall into this trap. You should understand that irrespective of tenure or EMI amount, the interest part EMI remains same. So if your interest rate is 11% that means you have to pay 11% interest annually irrespective of tenure, what it mean is the more is tenure the more interest you are paying.

You should opt for the minimum tenure you could afford. This will reduce the total interest paid.

8 Reasons Why People Don't Do Any Investment – Part 2

In my last blog, I have written about the difference between investment and non-investment. You can read it here.

 

Today I am going to write about the reasons why people don’t do any investment.

I have observed lot of reasons for not doing any investment. In first part I have written about 4 reasons, you can read that here.

Here I am listing remaining reasons.

8 Reasons Why People Don't Do Any Investment – Part 1

In my last blog, I have written about the difference between investment and non-investment. You can read it here.

Today I am going to write about the reasons why people don’t do any investment.

I have observed lot of reasons for not doing any investment. Here I am listing some common reasons.

What is Investment and What is Not

"Investment is putting money into an asset with the expectation of capital appreciation, usually over the long-term future"

Lets see what some people says about investment.

Case 1: I didn't think much and put all my money in saving account it gives me 4% interest.

Is this investment? No. You are earning 4% interest but inflation is 6%-8%, that means you money's value getting reduced by 2%-4% every year. Who is actually earning here? banks. Same money they are giving you as loan with interest rate 11%-17%.

How to Download Form 26AS (Tax Credit)

Verification of TDS data with Form 26AS is very important step before filing your return. For error free return filing make sure you verify TDS details in Form 16 or Form 16a with Form 26AS.

Form 26as is available in TRACES website. Please follow the below steps to download your Form 26as.