Under repayment of housing loan 80C of the Income Tax Act, 1961, home loan borrowers in India can claim a tax deduction of up to Rs. 1.5 lakh per financial year on the principal repayment component of their home loan.
What is the Repayment of Housing Loan Under 80C?
This benefit is available for both self-occupied and let-out properties, provided the loan is taken for the purchase or construction of a residential house. To qualify,
The property must be held for at least 5 years; otherwise, the deduction claimed earlier will be added back to taxable income.
Additionally, registration fees, stamp duty, and other related charges paid during property purchase can also be included within the Rs. 1.5 lakh limit. However, this deduction is not applicable for home improvement or plot loans.
Borrowers can claim this benefit along with other Section 80C investments like PPF, ELSS, and life insurance premiums.
To maximise tax savings, borrowers should ensure timely EMI payments and maintain proper loan statements. Combining Section 80C (principal repayment) and Section 24(b) (interest deduction up to Rs. 2 lakh for self-occupied property) can significantly reduce taxable income.
Get Help with Your Tax Assessment and Payments from Experts at NoBroker
Read more:
How to Save Income Tax Other than 80c?
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
What is Repayment Housing Loan 80C?
ruchi
42 Views
1
6 months
2025-05-30T06:52:55+00:00 2025-05-30T06:52:57+00:00Comment
Share