There are many tax benefits that are associated with the usage of the gold loan for specific reasons include:
Business interest cost: Interest rate on gold loan taken for business uses can be claimed while filing tax returns as a business cost, successfully saving upon your tax responsibility.
2. Buying of a house or improvements thereto: Benefits of tax can be availed under Sections 24 (b) and 80C of the Income Tax, that allows the exclusion of the qualifying portion of interest cost and the principal repayment respectively, effectively and reducing the main cost of credit.Gold loans are the best option when you need capital urgently. You can’t need to understand such products in order to phasing future necessities, but also understand for upcoming new product that are good and effectively reduce the overall interest rate on the loan.