Income Tax Benefits On Home Loan | Claim Deductions On Home Loan Interest

Income Tax Benefits On Home Loan

The home loan comes with lots of benefits. The biggest advantage of home loan is that you can obtain an income tax deduction. To explain the Income tax Benefits on Home Loan we have divided into three categories under section 80C, under section 80EE and under section 24. Do you know you can obtain benefit maximum 2 lakh under these sections? If you have taken your home with the aid of a loan you are eligible to Claim Deductions on Home Loan Interest.

Income Tax Benefits On Home Loan

Users are applicable to claim the subtraction in their income if they have taken home loans. There are two types of deductions is possible one is against the principal amount and another is interest payments which you are paying for your home loan. Government of India governed Income Tax department and Home Loan deductions. We present a table which is based on per person and not per Property. In any case, you have taken home loan jointly then the both person individually applying for the claim and may earn deduction

Particulars Deduction
Self Occupied Property Non-Self Occupied Property
Section 24 2,00,000 No Limit
Section 80C 1,50,000 1,50,000
Section 80EE 50,000 50,000

Read NowHow To Pay Income Tax In India? 

Income Tax Benefits On Home Loan

Under Section 80C

  • Assume shweta purchased a property and sold it within five years of registry, her principal repayment was reversed and after that it would be included in her income in the same year in which she sold her property.
  • If any customer contains credit protection insurance for repayments of the loan, he/she is applicable to claim deduction under section 80C.
  • Finance minister Arun Jaitley has been announced a great benefit for those peoples who are purchasing home first time within the limit of Rs. 50 lakh. They can earn additional deduction of Rs. 50,000 even they have home loan up to Rs. 35 lakh.
  • If you have taken the home loan and you missed to pay its EMI still you are eligible to claim deduction under tax rules.
  • During the pre-construction, users are unable to claim for tax deduction. They can only claim when the construction of the property is accomplished.
  • Users are applicable for this deduction in five equivalent installments in the year of property completion.
  • If you purchase second home, you can claim as deduction for the complete payment of interest.
  • In case of a second house, the entire payment towards interest can be claimed as deduction.
  • Users are applicable for tax deduction for the stamp duty and registration charges but only in which year they have paid.

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Under Section 24

  • For a self-occupied property the maximum tax deduction is permitted for Rs. 2 Lakhs.
  • Users can be claimed for reconstruction and repairs of property.
  • For the tax deduction you must have copy of income tax report.
  • It is applicable for all interest repayment.
  • If the customer does not borrow from scheduled bank he/ she may lose tax benefits.
  • Under Section 80EE, you will unable to take benefit of Rs 50,000

Section 80EE

  • If you don’t get sufficient benefit under section 80C then you take additional benefit through Section 80EE.
  • If you want to apply for claim then the loan must be sectioned in the financial year.
  • In order to avail the benefit, borrower has to repay the loan under the given time period.

Tax Benefits Of Home Loan

Particulars Section 24 Section 80C
Tax Deduction allowed for Interest Principal
Basis of Tax Deduction Accrual basis Paid basis
Quantum of Tax Deduction allowed Self Occupied Property:Rs. 2,00,000Non Self Occupied Property: No Limit Rs. 1,50,000
Purpose of Loan Purchase/ Construction/ Repair/ Renewal/ Reconstruction of a House Property. Purchase / Construction of a new House Property
Eligibility for claiming Tax deduction Purchase/ Construction should be completed within 3 years Nil
Restriction on Sale of Property Nil Tax Deduction claimed would be reversed if Property sold within 5 years

Only that person is valid for claimed or tax advantages who have built the property. We are mentioned tax benefit of home loan in the above table for the ease and the convenience of users. All relevant facts of section 24 and section 80C are presented in the above area.


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