Let me tell you about the home loan repayment tax benefit. Home loan borrowers in India enjoy two major tax benefits under the Income Tax Act, helping reduce their taxable income. These are: Section 80C Deduction, and Section 24(b) Deduction.
Section 80C Deduction: You can claim up to Rs. 1.5 lakh per year on the principal repayment of your home loan. This applies only if the property is purchased or constructed within 5 years from the loan sanction date.
Section 24(b) Deduction: The interest paid on a home loan is deductible up to Rs. 2 lakh per year for a self-occupied property. If the property is rented out, the entire interest is deductible without any upper limit.
For under-construction properties, the interest paid before possession can be claimed as a deduction in five equal installments from the year the construction is completed.
Additional Benefit (Section 80EEA): First-time homebuyers can claim an extra Rs1.5 lakh deduction on interest for affordable housing (loan up to Rs. 45 lakh, property value ≤ Rs. 50 lakh).
These deductions help lower EMI burdens significantly. Always keep loan statements and proofs for ITR filing.
Get Help with Your Tax Assessment and Payments from Experts at NoBroker
Read more:
Is Tax Benefit Available on Top up Home Loan?
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What Are The Tax Benefits Available On Home Loan Repayment?
priya
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2025-05-30T06:56:58+00:00 2025-05-30T06:57:00+00:00Comment
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