I am planning to buy a second home and I am in a 30% income tax bracket. I requires Rs. 15 L & I have 20 L in bank as FD. The Bank is ready to give home loan of 15 L against my FD as collateral. Consider tenure of home loan as 10 years.
So which option will be benefacial considering tax planning and earning and why ?. 1. either to premature the FD to make payment Or 2. Go for Home loan as bank advised?
Please Guide.
CAclubindia
