A home loan offers meaningful income-tax savings under the old tax regime. Here are the main deductions (resident and NRI taxpayers with Indian taxable income).
Principal repayment — Section 80C
- Deduction on the principal repaid, within the overall ₹1.5 lakh 80C limit (shared with PF, insurance, ELSS, etc.).
- Stamp duty and registration charges can also be claimed under 80C in the year paid.
Interest paid — Section 24(b)
- Up to ₹2 lakh per year on interest for a self-occupied property.
- For a let-out property, interest is deductible against rental income (with overall loss set-off limits).
Important conditions
- These benefits apply under the old regime; the new regime largely does not allow them — compare both.
- Construction must usually be completed within the prescribed period to claim full interest.
Plan your loan with our EMI calculator and eligibility calculator.
This guide is general information, not legal, tax or financial advice. Rules (FEMA, income tax, TDS, stamp duty) change and depend on your situation — please confirm current rules with a qualified chartered accountant, lawyer or the relevant authority before acting.