The income tax benefit on home loan can significantly reduce your annual tax liability. Section 24(b) allows you to deduct interest paid on self-occupied property up to Rs. 2 lakhs if you are purchasing a home through a loan. However, in the case of rented property, the full interest may be deducted. I have shared more information about this below.
How Much Tax Benefit on Home Loan?
Under Section 24(b), you can claim a deduction of up to Rs. 2 lakh per annum on the interest paid for a self-occupied property. If the property is rented out, the entire interest amount is deductible without any upper limit.
You can claim up to Rs. 1.5 lakh per annum under Section 80C for the principal repayment of your home loan. This deduction also includes payments made towards stamp duty and registration charges, provided they are paid in the same financial year.
First-time homebuyers can avail an additional deduction of up to Rs. 50,000 per annum under Section 80EE, provided the loan amount does not exceed Rs. 35 lakh and the property's value is within Rs. 50 lakh.
If you have taken a joint home loan, each co-borrower can individually claim maximum tax benefit on home loan under Sections 24(b) and 80C. I hope you found this helpful.
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What are the Tax Benefits on Home Loan?
annu
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2025-05-17T16:12:19+00:00 2025-05-17T16:12:21+00:00Comment
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