How will the possible tax sop help?
Taking into account the fact that the interest outgo of your home loan will be the highest in the initial years of your home loan repayment, this tax sop will be highly useful for salaried individuals looking to obtain a home loan in the upcoming months. Apart from allocating a portion of money towards the EMI for the loan repayment, balance other budgetary needs like children’s education, household expenses, investment needs, medical expenses, etc., a salaried individual also needs to pay a monthly tax outgo as well by way of TDS (tax deducted at source). The possibility of increasing the tax sop on the interest component of the EMI can provide welcome relief for people planning to take up a home loan as an additional sum of money can now be exempt from tax. In the example provided it is clear that in the first five years there will definitely be a tax outgo that exceeds Rs 200,000. In such a scenario, this increase in tax rebate will help with the higher interest outflow in the initi
