New deduction on affordable homes benefits loans with longer tenures

 The move to provide additional tax deduction on affordable homes will benefit borrowers who opt for long-tenured loans. The newly-introduced provisions may not result in significant savings for loans that have a tenure of below 15 years. The reason: As the tenure of a loan reduces, so does the interest outgo, resulting in lesser savings. As the new tax deduction has a cap on the property price, those opting for a joint home loan will not get the benefit. The recent Budget has increased the deduction a taxpayer can claim for interest paid on loans if they buy affordable homes. The g.....

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