For the financial year, 2016-17, I have paid by preset ECS following towards repayment of housing loan borrowed from SBI
Interest – 146601
Principal – 89598
As per income tax rules of sec 24-6(Interest component of housing loan), we have eligibility of 200000 in a financial year, Thus, I have a balance of 53399 for FY2016-17.
So could you please suggest what steps shall I follow in order to ensure the that the lender SBI adjusts the repayment under interest component only, I am open to pay the sum of 53399 and before 31-Mar-17.
Thanks and Regards
I think it is not possible for this year as the EMI is already cleared from you for this current year and also there is no such facility that you pre-pay your EMI to get the tax benefits.
However, if you want to utilize the fullest tax benefit on interest component, then you have to increase the tenure of the loan. This makes the bank more profitable.
But a serious question-Do you feel paying interest on home loan for the sake of tax benefit is the WISEST idea? For the sake of saving Rs.30 (If I consider you under highest tax bracket), you are spending Rs.70 in terms of interest payment. So definitely lenders or bankers continuously running their business in profit.