Positive: Old Regime is the clear winner
Old regime saves ₹1,09,200 more than new regime. Home loan deductions (24b + 80C) make old regime highly beneficial.
•Your home loan deductions strongly favor old regime — keep maximizing 80C + 24(b)
•Prepaying principal increases 80C benefit (up to ₹1.5L) and reduces total interest
•If let-out, claim 30% standard deduction on rental income — it is automatic
Total Tax Benefit
Old Regime saves ₹1,09,200 more
Home loan borrowers in India can claim significant tax deductions under Section 24(b) for interest, Section 80C for principal repayment, and Section 80EEA for first-time buyers. These deductions are available only under the Old Tax Regime.
For self-occupied properties, you can claim up to ₹2,00,000 per year on housing loan interest. For let-out properties, the entire interest amount is deductible with no upper limit.
The principal portion of your EMI (up to ₹1,50,000) qualifies under Section 80C. This shares the limit with PPF, ELSS, EPF, and other 80C investments.
The New Tax Regime does not allow deductions under Section 24(b), 80C, or 80EEA. This means home loan holders almost always benefit more from the Old Regime, especially if annual interest exceeds ₹1.5 lakh.
Old regime almost always wins for home loan holders — Section 24(b) + 80C together can save up to ₹5L in deductions.
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