Pre-payment of Housing Loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 December 2010 I wish to make part pre-payment of hosusing loan.

What would be the tax implications?

Is it feasible to prepay the loan?

Please advise.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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24 December 2010 No tax implication, You will get principal amount deduction u/s 80C and Intt up to Rs. 1.50 lakhs.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 December 2010 You can make part pre-payment as advised by CA SK Bhagat.
If you are in the tax brackets and desire to maintain the limit of Rs 100000/ for Section 80C benefits also, then limit your prepayment so as not to exceed the limit. This you can do by postponing the balance pre-payments till April 2011.

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