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investment vs payment of loan

sandeep saini (statistical officer) (24 Points)

21 January 2017

I am having a personal loan of rs. 2.5 lakhs outstanding bearing 14.75 â„… interest rate. I should invest money for deduction in tax or pay the personal loan...what should i do

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 21 January 2017

If your slab rate is 20% or more, you may think of investment for 80C.

sandeep saini (statistical officer) (24 Points)
Replied 21 January 2017

sir slab rate is 10%

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 21 January 2017

In that scenario, its not advisable as net effect will be nil. Secondly, the investment will have lock in period of minimum 3 years, and if the slab is increased in the next budget, then net impact will be negative.