EMI Calculation

Loans

Non Resident Indian(NRI)

Tax Benifits

The income tax authorities look upon with favour at those servicing a housing loan form specified financial institutions. It is up to you to be wise enough to take advantage of the home loan facilities provided by them.

When put in figures, this is quite an amount

  • Assume taxable income of Rs 4lakh, placing the assessee in the highest tax bracket.
  • Assume interest payment during the first financial year is Rs.!.60 lakh
  • Taxable income stands reduced to Rs.2.5 lakh (Rs 4 lakh - Rs-1.5 lakh being the maximum limit).
  • Total tax amounts to Rs.49,980 (tax of Rs 49,000 + surcharge of Rs 980).
  • Tax saved is Rs 45,000 (tax @30% on Rs 1.5 lakh plus 2% sucharge as the investor is in the highest tax bracket). That brings us to Section 88 of the income Tax Act.