Home loan prepayment tax benefits

I have paid Rs. 55462.00 towards Interest and Rs. 13853/- towards Principle during Fin Year 2012-13

Balance Outstanding Loan amount of Rs. 607804/- was settled on 4th Jan 2013 (paid from Wife’s Savings)

What tax benefit on home loan prepayment i.e. Rs. 607804, I will get.

Regards,

Srinivas Rao

asked Feb 23 '13 at 15:32 by srrao 111

What benefit we both get as both are working.
(Feb 23 '13 at 15:37) srrao

You should be able to claim 80C deduction for home loan principal payment upto Rs 1 lakh. Please note that 1 lakh limit is combined limit on all 80C deductions (along with insurance, PPF, EPF, ELSS, tax saving fixed deposits etc.)

Tax benefit would only be taken by person in whose name residential property is. If you and your wife are joint owner of property, then you claim principal deduction in same ratio in which amount was paid by you. Max 1 lakh can be claimed for deduction individually.

answered Feb 25 '13 at 17:40 by Pankaj Batra 5.2k320

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Asked: Feb 23 '13 at 15:32

Seen: 2,502 times

Last updated: Feb 25 '13 at 17:42