You have extreme cash in hands from the past incentive your obtained and repaired put that simply matured. You have been thinking about the way you use the money. Your financial advisers that are included with everyone, doc, lawyer and grocer has actually recommended you grab exposure to security common fund. Your parents keeps told one purchase various other house.
Hold off. Your loan for the first house is not yet over. Should you make use of the finance so you can area-prepay your residence loan? you imagine you can lose out on some of the taxation benefits that mortgage cost gives you. Many on your own reputation may wish to carry on with your house loan since it will provide you with taxation gurus. Yet not, i believe, you do not get normally income tax benefit because you consider you will do.
Taxation Positives towards the Home loan Cost
Principal payment is eligible for taxation deduction up to Rs 1.5 lacs around Point 80C of the Taxation Work. Appeal commission towards housing loan is approved having tax deduction getting up to Rs 2 lacs having a home occupied house. In case the house is discrete or considered as let out, whole desire repaid on the housing mortgage is approved having taxation deduction.