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Boost savings and reduce tax with Bajaj Finserv Loan for CAs

  • Highlights

  • CA Loans help you save on EMIs

  • Deduction of up to Rs.1.5 lakh on the principal

Taking a loan is not only a good source of finance, but it can also help you bolster your savings while reducing your tax liability. Take a look at how various loans for chartered accountants can help you.

Personal loan and business loan for chartered accountants

Have you dreamt of adding a terrace garden to your home? Or do you wanted to upgrade your office’s computers and accounting software? For personal and professional needs, you can use a personal loan or business loan customised for chartered accountants like you. Improve your quality of life with the former, and use the latter to be the best professional that you can be. So, if you’re looking to expand the reach of your CA business, applying for a loan for chartered accountants should be on the cards.

Take a look at how these two loans help you boost your savings and minimise your tax liability.

• No need to risk your assets

Since you don’t have to procure business or personal assets to mortgage in exchange for funds, these loans immediately reduce the financial burden on your shoulders. You don’t have to risk your assets in exchange for funds, making the process affordable, convenient and stress-free.

• Access to a Flexi loan

A Flexi loan gives you the chance to borrow funds against a credit line, as and when the need arises. While you can make as many withdrawals as you wish to, the financial benefit is that you only have to pay interest on the amount that you use, and not the entire loan amount. You can withdraw, repay and re-borrow funds as many times as you wish to. Moreover, you have the option to pay only the interest as your monthly EMI. Then, you can repay the principal at the end of the tenor, which is another financial benefit. In effect, as compared to a term loan, choosing this option will help you save 43% on EMIs.

• Pay an affordable rate of interest

Unlike other loans, you can enjoy a low rate of interest on CA loans, which makes these financing options even more affordable. Also, you have the option of a flexible tenor. When you choose a longer tenor, your EMIs are spread out over a longer period of time, making each EMI more reasonable.

• Save tax on interest payments

When you take a business loan, the interest that you have paid towards it is considered to be an expense. This reduces your tax liability, especially since there is no limit on the maximum amount that you can have exempt. On the other hand, if you buy any asset from your personal loan, for example jewellery, you can enjoy tax exemption on the interest payment as well. But, the deduction isn’t provided for in the same year that you pay the interest. You benefit when you sell the asset. Let’s assume that you have purchased a computer. The difference between the purchase price of the computer (cost of acquisition) and its selling price is the capital gain. The interest component of your loan increases the cost of acquisition, which in turn reduces your capital gains. Since these gains are subject to taxation, a lower capital gain corresponds to lower tax liability.

Loan against property for chartered accountants

If you already own a home and are looking to buy an office space, you can use a loan against property to secure the necessary funds. Either way, this secured loan help you make big purchases without crippling your personal or business finances.

Take a look at how they help.

• Pay affordable EMIs: This loan come with relatively low rate of interest. So, if buying property is on the agenda, this loan remains to be your best option for finance. With a tenor that stretches up to 144 months, your EMIs become even more affordable and manageable.

• Save more with Flexi loans: With a loan against property, you can enjoy all the benefits of a Flexi loan. From EMIs that are 43% more affordable, to the choice to pay only interest in the form of monthly payments—you have ample options to make the loan more affordable.

• Enjoy valued-added services: These loans give you access to services such as customised insurance schemes and property search. If you opt for the latter, for example, you don’t have to hire a real estate broker. It is a service that is in-built into your loan, thereby reducing your expenditure.

This loan offers great tax benefits. Here's an overview of what you can expect.

• Tax deductions offered under section 24

Under this section, the interest paid is tax deductible. This holds true as long as you’re taking a home loan to buy, repair or reconstruct a residential property. If it is a self-occupied property, completed within 5 years, the deduction limit is Rs.2 lakh. But, after 5 years if the construction is incomplete, the deduction limit reduces to Rs.30,000. On the other hand, if the property isn’t self-occupied, there is no limit on the deduction and no time frame governing this.

• Tax deductions offered under section 80EE

This benefit is applicable only for first-time homeowners. So, if you’re taking a loan against property by pledging a house that you had already purchased, you won’t be able to claim a tax break under this section. As long as your property’s value is less than Rs.50 lakh and your loan is lower than Rs.35 lakh, you can claim a tax deduction on your interest payment, of up to Rs.50,000 each year. This benefit is available to you until you pay off your loan.

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