Home loan benefit

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I had taken a home loan of 16lakh against home on 2017-18, and on March i had decided to take voluntary retirement from company and I will going to get 16 lakh for vrs. I want to pay full loan amount ones for all so I want to know tax benefit for this thing

Deduction is available under the Income Tax Act under section 80C provided you have taken the loan for the purpose of purchase or construction of the residential house. Assuming you have taken the loan for the specified purpose then the repayment of principal will be eligible for deduction under section 80C. The total deduction under section 80C will however be restricted to maximum of Rs1.50 lakh, which will include all other investments like LIC, and mutual funds.

You could prepay part of the loan in March 2018 and balance part in April 2018 to avail the benefit of deduction under Section 80C over two years.

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