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Home Loan Tax Benefit

₹6.0L
₹0
₹25L
₹1.5L
₹0
₹5L

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

₹1,09,200

Old Regime saves ₹1,09,200 more

SectionOldNew
Sec 24(b)₹2,00,000—
Sec 80C₹1,50,000—
Total Deduction₹3,50,000—
Tax Saved₹1,09,200—
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Learn more about Home Loan Tax Benefits

Tax Benefits on Home Loans in India

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.

Section 24(b) — Interest Deduction

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.

Section 80C — Principal Repayment

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.

Old vs New Regime for Home Loans

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.

Key Tips

01Joint home loan. Both co-borrowers can claim deductions separately — effectively doubling the benefit to ₹4L interest + ₹3L principal.
02Completion deadline. Section 24(b) limit is ₹2L only if construction completes within 5 years of the loan. Otherwise, the cap drops to ₹30,000.
03Let-out advantage. If you rent out your property, the full interest is deductible plus you get a 30% standard deduction on rental income.
04Prepay strategically. Increasing principal repayment boosts your 80C benefit while reducing total interest paid over the loan tenure.
💡

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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