Tax Benefits on Home Loan: Section 24 and 80C Explained

Tax Benefits Overview

Home loan borrowers can claim tax deductions on both principal repayment and interest payment.

Section 24: Interest Deduction

• Maximum deduction: ₹2 lakhs per year for self-occupied property
• No upper limit for let-out property (full interest deductible)
• Available from pre-construction interest (in 5 installments)

Section 80C: Principal Deduction

• Maximum deduction: ₹1.5 lakhs per year
• Includes principal repayment, registration, stamp duty

Section 80EE: First-time Home Buyers

• Additional ₹50,000 interest deduction
• Conditions: Loan up to ₹35 lakhs, property value up to ₹50 lakhs