Can you really save tax with a home loan?!

Published: January 9, 2016 at 8:06 am

Last Updated on

When you get a home loan, are you really saving tax? Listen to Ashal Jauhari explain why it is an illusion to think that one can save tax by getting a home loan!

Here are the videos of the third Chennai investor meet held on Sep. 2015. I was able to videograph only part of Ashal’s talk  (Apologies, should have done better). Here are 3 segments.

‘Who is Ashal Jauhari?’, you ask? Read this to find out: Interview with Ashal Jauhari: Relentless Financial Awareness Activist

A good number of people have Facebook accounts only to be part of Asan Ideas For Wealth, his Facebook group. He also blogs occasionally at Asan Ideas for Wealth: Personal Finance & Investments

Note:  Reduce volume before playing and gradually increase it, until comfortable. The room was dark. Therefore, although the slides are clear, for the most part, only Ashal’s silhouette  will be seen.

Capital Gains and how they are taxed (3 mins)

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Can you really save tax with a home loan?!

In this video, Ashal clears many doubts about HRA,home rent, home loans and answers if we can really save tax with a home loan or is it just an illusion (awesome!)

Writing a will and Q/A

In this segment Ashal discusses ‘how to write a will’ and answers questions. Unfortunately, the will part is not complete.  You can download the sample will provided by Ashal here: Sample Will

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Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice.
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21 Comments

  1. Home loan part was ultimate…especially the one where Ashal explains how to really save tax by taking loan from a family member. Thanks Pattu.

  2. Can you really save tax with a home loan?!
    seems 2nd part is missing. Half Conversation missing after 29.59 min

  3. Hi,

    Very useful video, but missed the second part .
    If possible I would like you to have a topic on Home loan and discuss various possibilities financially and emotionally. It is always great to know your perspective.

    Thanks,
    Manoj

  4. “A good number of people have Facebook accounts only to be part of Asan Ideas For Wealth, his Facebook group.”

    Itssssss meeeee 😛 epdi daan kandupidikrangalo haiyo haiyo…

    Well found Jagoinvestor from Google. Stumbled on to your freefincal @Jagoinvestor. Stumbled on AIFW @freefincal (modus operandi as described by Pattu Sir!). Stumbled on financialsafari & Subramoney @AIFW.

    Long Live the DIY Community…

  5. Really informartive. I am confused whether i understood one part correctly. This part refers to the different limits of tax saving on home loan interest for ‘ self occupied’ case and ‘rented out’ case. If the house is self occupied the limit is Rs. 2 lacs but if it is rented out then there is no limit. I can claim tax exemption on the whole interest amount even if it is more than 2lacs (minus rental income ofcourse).
    Did I understand it correctly?

  6. Hi,
    Thank you very much, very nice video and knowledgeable video. Still I have some doubt on will.
    1. if witness person is no more then how will be handled? (both or all)
    2. If in my will I mention my wife is first, if not my wife then it will be my children. But in extreme case all family members are no more then what will happen to my property or life insurance? Who can claim?
    3. While declaring will my bank account have say 2lakh but on the day of death there is no amount in bank then what will happen?
    4. If I take loan from some bank after my will then how loan will be recovered? Nominee should pay loan amount ?
    5. If my wife take every amount and benefit and will not give any amount my parents or children then how my kids or parents claim benefit?
    One more question, not related to will but related transfer of property, If I own house and I will transfer my home to his name but later point if I feel I did mistake and I want to take my home back from him. Can I able to do that?

    Execuse me if I have asked same question/s again. Thank you in advance.

    Thanks & Regards,
    Krishna

  7. Superb article. One question — can you please share the “will” document which is mentioned in the video?

    1. If you have a FB acct, you can join Asan Ideas For Wealth and download it from there. Else let me know.

  8. The video on home loan was really cool. I wish to take a home loan from my grand mother. Can you please guide me on the documentation for this purpose? One, I got from the video is that signed agreement on 100rs stamp paper? Can you provide any documentation for this? Also, what other documents are required? Further, is this normally accepted by employers or can this only become part of our IT retruns? Thanks much.

  9. Superb! on the Home Loan video. Want to know can a similar exercise ( as taking a loan from my father ) be done with spouse ( essentially taking a loan from the savings accrued by the spouse ). If so is the process similar to what was mentioned?

    And, is there anyway the full subject can be addressed ( coz the 2nd part was missed).

  10. Hi, I was watching the video on homeloan and I have this question. When I take a loan from my father and pay more interest I may be able to claim more tax benefit but at the same time my father’s income will increase and he has to pay the tax anyway. So is the real saving after my dad pays the income tax of let’s say 30% and the remaining 70% is saved?

    Thanks
    Kiran

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