How will the new rate affect my tax savings / IT benefits?
The total interest payable by you i.e. inclusive of the increased interest amount would qualify for deduction under Section 24 for income tax purpose up to overall limit of Rs. 150,000/-. So you will continue to enjoy the tax benefits. Principal repayments would qualify for deduction from taxable income under Section 80C up to overall limit of Rs. 1,00,000/-.
The total interest payable by you i.e. inclusive of the reduced interest amount would qualify for deduction under Section 24 for income tax purpose up to overall limit of Rs. 150,000/-. So you will continue to enjoy the tax benefits. Principal repayments would qualify for deduction from taxable income under Section 80C up to overall limit of Rs. 1,00,000/-.
