Can I take a home loan to reduce my income tax liabillity?
Can I take a home loan to reduce my income tax liabillity?
Chiranjibi Aug. 04, 2018
You can always use your housing loan to reduce the tax liability.
But, taking a loan just to reduce your tax, that would be silly. Let me tell you why.
Say you are in the tax bracket of 20%. You took a housing loan just for reducing tax, i.e you didn't use the money to make a house property.
You paid Interest of Rs. 50000, and saved tax of 10000. (being 20%).
What I am trying to say is that you paid 50000 to save 10000. I strongly advice you not to take a loan if you don't intend to actually use it on the house property.
