Benefits of Applying Online
When Banks Compete, you win.
Apply for a Home Loan at ApnaPaisa and we will match your requirements with the best offers from our network of over 400 service providers. We will get a maximum of five providers to compete for your business. WHEN BANKS COMPETE YOU WIN. You can then decide which home loan is best for you based on:
- Lowest Interest Rate
- Lowest EMI
- No Pre-payment charges
- Lowest Processing Fees
- Maximum Eligible Loan Amount
- Mandatory Documents Required
- Lowest Processing Fees
Or any other factor that is important to you.
Negotiating Tips
1) If you have a good credit record and your income is sufficient to justify the loan you can negotiate on interest rates. You can also try and get Processing fees or legal or valuation fees reduced or completely waived.
2) If you go for a floating rate loan then pre-payment charges are not payable.
3) When interest rates are high and are expected to go down you should go in for a floating rate loan as it makes no sense to lock into high fixed rates or the so called Dual rate loans where rates remain fixed for a couple of years before shifting to regular floating rate loans. Please review this decision at least once every 6 months
4) Take term insurance and critical illness and accidental disability policy for the full loan amount to make sure you or your loved ones don't have to worry about loan repayment should you die or are disabled due to a critical illness or accident. You cannot be forced to buy this policy from the insurance company chosen by the lender - you should choose your own insurer.
Tax exemption for property under Self-lease Scheme
Tax exemption for property under Self-lease Scheme is available unde Section 23 of I-T ActApnaloan.com Research Bureau
10 Aug 2007
Our employer has a unique staff quarter scheme. We are eligible to lease out our existing flat to the company for which we are paid lease rent and the company allots the same flat to us as a company provided accommodation. It calculates the perk value of such rent free accommodation and calculates our tax liability accordingly. I have taken a loan to acquire our flat which I own and am staying in under the above scheme. In the calculation of "Income from house property" will this property be treated as "self occupied" or as "rented out"? Can I claim deduction of the full interest paid on the loan, without restricting it a maximum of Rs.1, 50,000.
The scheme outlined by you is quite popular with some PSUs and is referred to as "self lease" scheme. The property will be treated as a rented property and its income will need to be calculated accordingly. Click here for details. The detailed technical explanation is as follows:
The definition of self occupied property is given in Section 23(2) of the I-T Act which is subject to the provisions of Section 23(3). Section 23(3) provides that "if the house is actually let's during the year, or any other benefit is derived by the owner there from" -then such a house cannot be considered as a self occupied house property. The relevant case law in this respect is D.R. Sundar Raj Vs. Comm. Of I.T. {123 ITR 471 (AP)}.
You can deduct the entire interest payable on a loan taken to acquire such a property (without any limit) as well as a standard deduction of 30% of the annual value.
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