Home Loan Repayment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2011 I HAVE AVAILED HOME LOAN OF RS.25,00,000/-. THE REPAYMENT TOWARDS PRINCIPAL IS RS.1.00.000/- AND TOWARDS INTEREST IS RS.3,50,000/-. MY TAX BRACKET IS 30% PLUS EDU CESS HAVING SALARY INCOME. OUT OF REPAYMENT 70% IS PAID BY ME AND 30% BY MY SON WHOSE TAX BRACKET IS 10% PLUS EDU CESS.
SON IS COOWNER AND LOAN IS IN BOTH NAMES.
MY QUESTION IS WHETHER IT IS BENEFICIAL FOR ME TO REPAY THIS LOAN ?

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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11 May 2011 No it is not beneficial for ou to repay the whole loan.

If you repay total loan, maximum benefit you will get u/s 80C Rs.1 lacs and 1.50 lacs under section 24(b)

But if your son also repay he will ge additional benefit both 80C and 24(b) of the Income Tax Act