Home Loan Tax Benefit Calculator
Calculate Section 24(b) interest deduction and Section 80C principal repayment benefit — see your annual tax saving on home loan instantly.
Self-occupied deduction breakdown
Let-out property tax breakdown
How a home loan saves tax
A home loan gives you two separate tax deductions under the old regime. The interest you pay is deductible under Section 24(b) — capped at ₹2,00,000/year for a self-occupied house and unlimited for a let-out property. The principal repaid is deductible under Section 80C up to ₹1,50,000/year (shared with PPF, ELSS, LIC etc.). First-time buyers may also claim an extra ₹1.5L under Section 80EEA.
Section 24(b) vs 80C explained
Section 24(b) — interest
Deduction on home loan interest. For a self-occupied house the cap is ₹2,00,000/year; for a let-out property the entire interest is deductible, though the resulting house-property loss you can set off against other income is limited to ₹2L/year (the rest carries forward 8 years).
Section 80C — principal
The principal portion of your EMI is deductible up to ₹1,50,000/year. This limit is shared with PPF, ELSS, life insurance, tuition fees, etc., so plan your 80C mix so the home loan principal does not crowd out other savings.
Section 80EEA — first-timers
First-time buyers of an affordable home (stamp value ≤ ₹45L) could claim an additional ₹1,50,000 interest deduction over and above Sec 24(b), for loans sanctioned in the eligible window.
Old vs new regime
Under the new regime, Sec 24(b) and 80C are not available for a self-occupied house, so the tax saving is nil. Interest on a let-out property remains deductible against rental income even in the new regime.