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Home Loan Tax Benefit

Section 24B interest + 80C principal — total tax saved

₹40.00 L
8.5%
20 yrs

Property Use

First-Time Buyer Deductions

First-Time Home Buyer

Enables 80EEA or 80EE deduction

Tax Details

Year 1 EMI & Deductions

₹34,713/mo

Year 1 interest paid

₹3.37 L

Year 1 principal repaid

₹79,609

Sec 24(b) interest deduction

Capped at ₹2L for self-occupied. Year 1 interest: ₹3.37 L

₹2.00 L

Sec 80C principal deduction

Within ₹1.5L 80C limit

₹79,609

Annual Tax Saving Summary

Total interest deductions

Sec 24(b) + 80EEA/80EE if applicable

₹2.00 L

Principal deduction (80C)

₹79,609

Total deductions (Year 1)

₹2.80 L

Tax saved at 30% slab

₹83,883

Year-by-Year Interest & Principal (First 5 Years)

YearPrincipalInterestBalance
Year 1₹79,609₹3.37 L₹39.20 L
Year 2₹86,646₹3.30 L₹38.34 L
Year 3₹94,305₹3.22 L₹37.39 L
Year 4₹1.03 L₹3.14 L₹36.37 L
Year 5₹1.12 L₹3.05 L₹35.25 L

Home Loan Tax Rules

→ Sec 24(b): Interest up to ₹2L for self-occupied. NO limit for let-out property. Under construction: ₹2L pre-construction interest can be deducted in 5 equal instalments after possession.

→ Sec 80C: Principal repayment up to ₹1.5L within overall 80C limit. Do NOT sell within 5 years — deduction reverses.

→ Sec 80EEA: First-time buyer + loan Apr 2019–Mar 2022 + stamp duty ≤ ₹45L → extra ₹1.5L interest deduction.

→ Sec 80EE: First-time buyer + loan Apr 2016–Mar 2017 + property ≤ ₹50L + loan ≤ ₹35L → extra ₹50K.

→ New regime: Sec 24(b) and 80EEA/80EE are NOT available. Only let-out property interest deductible (no cap).

FAQ

Home Loan Tax Benefit — FAQ

Common questions about this calculator

Up to ₹2 lakh per year under Section 24B for self-occupied property. No limit for let-out property.

Calculations are approximate and for educational purposes only. Excludes surcharge for income above ₹50L. Consult a Chartered Accountant for personalised tax advice.