The Government of India has taken multiple steps to make things better for prospective home buyers. As the majority of home buyers take out a loan to buy a new house, the government allows the deduction of a specific portion of the interest and the principal amount from the net taxable income of the borrowers. You can use the home loan tax saving calculator to get an estimate of the amount of tax that you can save by claiming income tax deductions against your home loan EMIs.
You can use the Home Loan Tax Saving Calculator on Bajaj Markets to calculate the total tax benefit you can get on your home loan. The calculator is simple and has an easy-to-use interface. All you have to do is enter the following details in the designated fields of the calculator:
Loan Amount
Rate of Interest
Loan Tenure
Loan Start Date
The calculator will give you an estimate of the income tax that you can save on the principal and interest amounts of your home loan.
Let us try to understand this with the help of an example. Let’s say your annual income is ₹12,00,000, and you have taken a home loan of ₹50,00,000 for a tenure of 20 years. Your tax savings on the house loan can be calculated as per the following table:
Principal Home Loan Amount |
₹50,00,000 |
Annual Income |
₹12,00,000 |
Home Loan tenure |
20 Years |
7% per annum |
|
Other 80(C) Investments |
₹1,00,000 |
Tax Before Home Loan |
₹1,42,500 |
Tax After Home Loan |
₹82,500 |
Tax Savings Because of Home Loan |
₹60,000 |
Using a home loan tax exemption calculator can provide you with several advantages. Below are some of them:
You can compute your savings utilising the Section 80C deduction.
Section 80C allows you to save tax by selecting qualifying assets and expenses.
Depending on your investing goals and level of risk tolerance, you can decide which Section 80C investment to make.
You have an idea of how much tax you have saved, and you may invest in other assets.
A simulation used in the tax saving calculator determines how much money may be saved in taxes by taking Section 80C tax deductions. With the help of specific investments and costs, you may save up to ₹1.5 Lakhs in taxes each fiscal year.
You can calculate the tax exemption based on your income tax slab and the principal and interest portions of your house loan EMIs.
You can simply use the Home Loan Tax Saving Calculator on Bajaj Markets to estimate the tax amount you can save by availing of the benefits of the various deductions under the Income Tax Act 1961.