MY SALARY IS 13LAC YEARLY, I WANT TO BUY A HOUSE FOR 20 LACS, WILL PAY 2LAC CASH AND REMAINING 18LACS. ON HOME LOAN EMIs. HOW MUCH INCOME TAX REBATE I WILL GET FOR THE HOME LOAN AND HOW CAN I CALCULATE IT, AND UNDER WHICH SECTION IT IS ENTERIED IN ITR FORM, I MEAN 80C,80CC..........????
Well here is how you calculate it (in general), Take Your Total taxable income (13L) - the standard deductible (1.5L) that differs per family conditions etc. reduce the Interest component of your loan from that, what ever remains will be your taxable income. e.g., you take out 18L for 1 years at a rate of 10.5% (Fixed) , which makes your interest to be 1.86 L for first year and then going down afterwards, so it is 13L-1.5L-1.86L=9.64, so your taxable income now will be 9.64 L and your tax would be around 2-3 lakhs.