Home loan emi
This query is : Resolved
sunil singhani
(Querist)
02 June 2014
I need your advice on this matter:
I had taken home loan of rs 1200000 9 years back for 15 years @ interest of 7.5%.Now due to rise in interest rates i am paying emi @ interest rate of 11.5%.I was getting income tax advantage on this as i come under 30% bracket.
I am planning to foreclose, so would you suggest to foreclose and opt for PFF for tax saving.
Please advice.
Thanks
I had taken home loan of rs 1200000 9 years back for 15 years @ interest of 7.5%.Now due to rise in interest rates i am paying emi @ interest rate of 11.5%.I was getting income tax advantage on this as i come under 30% bracket.
I am planning to foreclose, so would you suggest to foreclose and opt for PFF for tax saving.
Please advice.
Thanks
Nikhil Kaushik
(Expert)
02 June 2014
your net payout on interest is 8.05% (after tax impact). foreclosing would mean that you would repay the principal in advance leaving you with lesser capital to invest anywhere else.
So assuming that you have better options to invest in currently (means return more than 8.05%) you should not foreclose. Also, in near future stock markets are expected to rise substantially and interest rates should cool down somewhere down the line if not immediately.
So assuming that you have better options to invest in currently (means return more than 8.05%) you should not foreclose. Also, in near future stock markets are expected to rise substantially and interest rates should cool down somewhere down the line if not immediately.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- EPF ECR NEW RULES Sep 17th 2026
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
