Pre payment of home loan

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Anjali (Querist)

10 November 2016 Someone is having a bank loan of Rs. 1500000 and apparently also have a saving done over the years for emergency purpose of Rs. 500000 denomination notes of 500 & 1000. Can such amount be deposit in the loan account and reduce the tenure of loan.Is there any problem from Income tax perception in this.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 November 2016 Source of income has to be proved for any such deposits above 2.50 lacs.

Amol S Joglekar

Amol S Joglekar (Expert)

11 November 2016 you can do so if you have the source for the same.

Anjali

Anjali (Querist)

11 November 2016 It is saving done over the period of time.how its source will be determined. What if the loan is a joint loan.can it be shown as saving of 250000 each holder of loan.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 November 2016 Deposit 2.50 lacs in each one's saving ac and then transfer the amount to loan amount, you will not be asked for source.

Amol S Joglekar

Amol S Joglekar (Expert)

11 November 2016 God bless! For emergency you are holding 500000 at home! Does that much CASH in hand match that someone's other paraphernalia ?

Anjali

Anjali (Querist)

11 November 2016 It is not actually a single person's paraphernalia..Rather a cumulative total of every member including old age people who follow conservative perception.

Amol S Joglekar

Amol S Joglekar (Expert)

11 November 2016 See, so far as old people are concerned, they dont have to get scared.
250000 per old person should be more than enough to satisfy their conservative perception. What do you think?

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