Home Loan Tax Benefit
Section 24B interest + 80C principal — total tax saved
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)
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).
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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.