Home loan rate deduction

i have joint home loan on my husbands and my name.where he is borrower and i am co applicant .but recent rateof hdfc for women is 9.85.So if we converse the loan in my name then remaining tenure will be reduced from 18.4 years to 16.4 years or emi will  reduced from 63000 to 59500 keeping the tenure same..Annually he is getting tax benefit from salary approx 2 lakhs.I do small jobs for private companies which is not regular.should we convert the loan in my name ,then what about the tax benefit he is getting annualy.
Asked 1 year ago in Income Tax from mumbai, Maharashtra
This questions need more details to give accurate answer like - Salary bracket of your husband, Total Tenure of Term loan passed till date etc. However based on certain assumption i am giving you following answer :

Your annual tax benefit in form of Saving is Rs. 40,000/- (Assuming 20% Salary bracket of your husband), in that case your saving from EMI on annual basis will come to Rs. 42,000/-. Also periodically the interest amount will reduce and principle  amount will increase in emi so this gap will broaden. So it is advisable to convert this loan into your name and reduce EMI. However if your husband is in the bracket of 30% than it is advisable not to transfer this  loan in your sole name atleast for next couple of years where interest payment is higher and than later on you can shift it in your sole name.
Vishrut Rajesh Shah
CA, Ahmedabad
239 Answers
4.9 on 5.0
  Talk to Vishrut Rajesh Shah
I would suggest you that in that case you should not shift it to in your personal name.

Your total Housing Loan seems Rs. 90,00,000/- (Approx.) and on the same currently you must be paying annual interest worth Rs. 7,00,000/- to 8,00,000/- against eligible interest for tax purpose is Rs. 2,00,000/- only per person.

By shifting you would able to save only Rs. 54,000/- currently but you would loss tax saving worth Rs. 60,000/-. Which is not advisable.

Rather i would suggest you to show more income in your account also so that you can also claim eligible Rs. 2,00,000/- worth interest expenses against tax payable and increase total benefit.

So i would advise you not to shift it in your personal Name.
Vishrut Rajesh Shah
CA, Ahmedabad
239 Answers
4.9 on 5.0
  Talk to Vishrut Rajesh Shah

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