EMI moratorium on Home Loan and Tax Deduction

EMI moratorium on Home Loan and Tax Deduction.

On 27th March 2020 RBI announced for EMI moratorium on the term and other loans which include Home Loans taken by Individuals on the backdrop of outbreak of COVID-19. This moratorium was initially allowed for three months for the period from March 2020 to May 2020 which is extended for next three months to August 2020. Hence, in total, a period of 6 months is allowed for EMI moratorium. The moratorium is spred between two financial years viz. FY 2019-20 and FY 2020-21. The moratorium is optional and one may opt or do not opt for the moratorium. Those who do not opt for the moratorium and continue to pay the EMI will get the tax benefits as he was getting, however, those who opt for moratorium may have to sacrifice some of the tax benefits which is discussed in this article.


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Hope this helps employees during ‘Pandemic’ paying EMI’s.

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