In India, tax implications on partial prepayment of loans depend on the loan type. For home loans, there is no GST or income tax on prepayments. However, if a prepayment penalty is charged, GST applies at 18%. Personal and business loans may have foreclosure charges, but no direct tax impact. If prepayment is funded from taxable income, no tax benefits apply. So, to know how to solve tax issues for partial loan prepayment, you must specify your loan type.
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How to solve my query on tax charged for partial pre payment?
Surendra CH
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2025-03-03T11:02:11+00:00 2025-03-03T11:02:12+00:00Comment
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