Home-loan may seem such an easy option for house hunters, thanks to glossy ads in newspapers and hoardings! But, are you aware of the fact that as per RBI guidelines that the loan-to-value (LTV) ratio of housing loans is not supposed to exceed 80%[for loan amount more than 30 lakhs] and 90% [for loan amount less than 30 lakhs], banks could extend only a percent of the amount to the home-loan seekers, forcing you to arrange for down payment. […]
How to plan for house purchase down payment of a home
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Did you know
Withdrawal of dividend amount, by redemption of units in a debt fund before one year, is more beneficial than opting for a dividend, even though dividend distribution tax paid by the fund is just 14.126%. This is because, the withdrawal consists of partly principle amount, and hence, tax liability is only on the interest component which is minimal.
The equation works better, if withdrawal from a debt fund is done after one year, where long term capital gains tax is reduced to 10% and dividend distribution tax paid is 14.126%.