Case 1 : Monthly income Rs 40000 Monthly income of the individual 40000 Loan size as no of times of monthly income 30 total loan size LTV ratio Instalment to income ratio Value of the house Rate of interest
Repayment of loan and interest thereon
1200000
year
Interest
Total Principal instalment
75%
1 1,32,000 34,878
1,66,878
34.77%
2 1,28,163 38,715
1,66,878
1600000
3 1,23,905 42,974
1,66,878
11%
4 1,19,178 47,701
1,66,878
5 1,13,931 52,948
1,66,878
6 1,08,106 58,772
1,66,878
7 1,01,641 65,237
1,66,878
No of years of loan 15 years Assume annual loan repayment for the sake of brevity Year 1
Year 2
Year 3
Total annual income of the individual
480000 480000 480000
8 94,465
72,413
1,66,878
Deduction u/s 24 (b)
132000 128163 123905
9 86,500
80,378
1,66,878
Gross total income
348000 351837 356095
10 77,658
89,220
1,66,878
11 67,844
99,034
1,66,878
12 56,950
1,09,928
1,66,878
13 44,858
1,22,020
1,66,878
14 31,436
1,35,442
1,66,878
15 16,537
1,50,341
1,66,878
Deduction u/s 80C Deductioon u/s 80 EE Taxable income
Total benefit u/s 80EE availed
34878
38715
0
0
42974
313122 313122 313122
0