Home Loan Tax Benefit Calculator

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.

Housing Loan Tax Saving Calculator Details

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:

Advantages of Using Home Loan Tax Exemption Calculator

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.