house tax

Banks and NBFCs usually calculate home loan EMI (Equated Monthly Installment) using the Reducing Balance Method. The formula is: EMI=P×R×(1+R)N(1+R)N−1EMI = \frac{P \times R \times (1+R)^N}{(1+R)^N – 1}EMI=(1+R)N−1P×R×(1+R)N​ Where: ✅ Step 1: Convert Interest Rate If your bank charges 8% per annum → Monthly interest = 8 ÷ 12 ÷ 100 = 0.0067 ✅ Step 2: Example Calculation EMI=40,00,000×0.0067×(1+0.0067)240(1+0.0067)240−1EMI = \frac{40,00,000 \times 0.0067 \times (1+0.0067)^{240}}{(1+0.0067)^{240} – 1}EMI=(1+0.0067)240−140,00,000×0.0067×(1+0.0067)240​ 👉 EMI ≈ ₹33,458 per month ✅ Step 3: Total Payment & Interest 📌 Quick Tips to Reduce Home Loan Interest

1. Rental Income is Taxable 2. How Tax is Calculated ➡️ The balance amount is your Taxable Rental Income. 3. Example Suppose you rent out your house in Chittoor for ₹16,000/month: 4. TDS (Tax Deducted at Source) 5. GST on Rent