Home Loan Tax Benefit (Sec 24 + 80C)

Calculate total income tax savings on your home loan. Includes Section 24b interest deduction (Rs 2L), Section 80C principal repayment, and first-time buyer benefits.

Home Loan Tax Benefit Calculator

Annual tax saving on interest (Sec 24b) and principal (Sec 80C) in old regime

Home loan amount Rs 50L
Rs 5LRs 2Cr
Rs
Interest rate 8.5%
6%15%
%
Loan tenure 20 years
5 yr30 yr
yrs
Your tax slab
Annual tax saving
---
old regime, year 1
Sec 24b deduction
---
interest (max Rs 2L)
Sec 80C + 80EEA
---
principal repayment
Monthly EMI---
Year 1 interest paid---
Sec 24b deduction (capped Rs 2L)---
Sec 80C principal---
Sec 80EEA (first buyer)---
Total deductions---
Tax saving (incl. 4% cess)---
Effective interest rate after tax---
Annual EMI vs tax saving
Net EMI cost: ---
Tax saving: ---

Tax benefits available under old tax regime only. New regime does not allow Sec 24b or 80C deductions on home loan.

Home loan tax deductions breakdown
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ThriftRupee Insight

A home loan of Rs 50 lakh at 8.5% for 20 years in the old tax regime saves approximately Rs 85,000–1,00,000 in tax annually — Rs 60,000 on interest (Sec 24b, Rs 2L cap at 30% slab) + Rs 45,000 on principal in 80C (Rs 1.5L cap). Over 20 years, total tax savings can exceed Rs 15 lakh. But under the new regime, these deductions are not allowed — this is often the key reason the old regime still wins for home loan borrowers.

Home Loan Tax Benefits — Section 24b, 80C and 80EEA

Home loans in India offer significant tax benefits under the old tax regime. Section 24b allows deduction of up to Rs 2 lakh per year on interest paid for self-occupied property. Section 80C allows deduction of principal repayment (up to Rs 1.5 lakh, shared with other 80C investments). First-time buyers of affordable housing can claim an additional Rs 1.5 lakh under Section 80EEA — bringing the total potential deduction to Rs 5 lakh per year.

Frequently asked questions

What are the tax benefits on home loan in India?▼
Home loan tax benefits (old regime only): (1) Section 24b: deduction on interest paid up to Rs 2 lakh/year for self-occupied property (unlimited for let-out, subject to overall loss set-off rules). (2) Section 80C: deduction on principal repayment up to Rs 1.5 lakh/year (shared with other 80C investments). (3) Section 80EEA: additional Rs 1.5 lakh interest deduction for first-time buyers of affordable housing (stamp duty value ≤ Rs 45 lakh).
Is home loan interest deductible in new tax regime?▼
No. The new tax regime does not allow deductions under Section 24b or 80C. The only exception is let-out property where rental income is taxable — the interest deduction against rental income is still available under the new regime, but it cannot create a loss.
What is Section 80EEA for first-time home buyers?▼
Section 80EEA provides an additional deduction of up to Rs 1.5 lakh on home loan interest for first-time buyers. Conditions: loan must be sanctioned between April 1, 2019 and March 31, 2022, stamp duty value of property ≤ Rs 45 lakh, and the buyer should not own any other residential property. This is over and above the Rs 2 lakh Sec 24b limit.

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