Confusion on TDS?

Question

I'm planning to take a house worth 55lacks ( all inclusive).

My Gross salary : 8,54,000

CTC : 11,22,489

Outflow :

LIC Premium : 89000 pa

Mutual Funds : 60000 pa

Car loan : 9017/- ( started last month).

My question is how much loan i'm eligible for?

How much deduction can i get from IT and what would be the exact amount which i can use for principle and interest repayment?

I'm a dummy at these things , so i want you to be as elaborate as possible. Appreciate your help on this front.

Thanks!

Answer 1

Generally banks calculate thus:

If "x" is your take home as it stands now, then:

y = x - (all investments and loans).

Most banks add to this the benefit of tax deduction that you get if a home loan is taken. Assume this values divided by 12 is "z" which is what bankers call is your repayment capability.

Then loan eligibility is (z/1100) lakh is your eligibility; 1100 is for an ineterest of 11%; if it is 10% then 1000 insead of 1100 etc.

Assuming 55000 is z, at 11% interest,

55000/1100 = 50 lakh is the eligibility.

You can enhance this limit based on the income of your co-applicant who is only a notional person and does not have any repayment obligations.

PS: The calculations above could vary slightly from bank to bank.

Answer 2

Fortunately, the internet has opened up a host of opportunities to obtain such loans. There are websites that specialize in just that. Furthermore, there are traditional lenders that offer an online application pathway provides you with<!--provisional acceptance depending upon your ability to prove your statements to the lender this streamlines the lending process and gets rid of a lot of borrowing anxiety. If you meet specified criteria and can prove that you do, then you will definitely get the loan.

http://best-loans.awardspace.com/

How to get a particular loan should only be one aspect of your research, the other (even more important) things you need to take into account are the terms and conditions of the loan, your ability to make the monthly-->payments and whether or not you will need to put up real estate as security.Once you have taken the time to ask yourself some searching questions and also get some reliable answers from lenders, you will be in a much better position to choose a loan.

Answer 3

For home loan deduction in India

http://mytaxes.in/index.php?topic=9.0

Answer 4

as per indian income tax rule

1. investment rs. 100000/- aplicable(2008-2008)

2. car loan amount not aplicable as per income tax

3. if you will take home loan, thus you will take intrest on home loan maximum limit rs. 150000/-(2008-2009