Home Loan Tax Benefits — Interest 24(b), Principal 80C and 80EEA
A home loan gives you up to three deductions at once: interest under Section 24(b), principal under Section 80C, and an extra slice of interest under Section 80EE or 80EEA for eligible first-time buyers. The calculator below applies the right caps for a self-occupied or let-out property and shows how much survives under the new regime. Stated under the Income-tax Act, 2025 and the Act, 1961.
Interest — 24(b)
₹2,00,000
self-occupied · old regime
Principal — 80C
₹1,50,000
within the 80C limit
Extra interest — 80EEA
₹1,50,000
eligible first-time buyers
New regime
Let-out only
self-occupied interest lost
Home Loan Tax Benefit Calculator
Enter your annual interest and principal. The tool applies the ₹2 lakh cap, the ₹1.5 lakh 80C and the let-out set-off rules by regime.
Your loan and property
More details
Interest — Section 24(b) ₹0
Extra interest — 80EE / 80EEA₹0
Principal — Section 80C₹0
Total deduction this year₹0
Tax saved₹0
Enter your loan details to see the deductions and tax saved.
Section 24(b) interest is capped at ₹2 lakh for a self-occupied home; a let-out home has no cap, but the loss you can set off against other income is limited to ₹2 lakh a year (the rest carries forward eight years). Principal and 80EE/80EEA are old-regime only. Tax saved includes 4% cess and assumes the deduction falls within your top slab.
The home-loan deductions, one by one
| Benefit | What it covers | Limit | Regime |
|---|---|---|---|
| Section 24(b) | Interest on the home loan | ₹2,00,000 for a self-occupied home; no cap for a let-out home (loss set-off against other income capped at ₹2,00,000) | Self-occupied: old only · Let-out: both |
| Section 80C | Principal repayment | Within the ₹1,50,000 80C limit | Old only |
| Section 80EE | Extra interest, first-time buyers (loan sanctioned FY 2016-17) | ₹50,000, above the ₹2 lakh | Old only |
| Section 80EEA | Extra interest, affordable housing (loan sanctioned Apr 2019 to Mar 2022) | ₹1,50,000, above the ₹2 lakh | Old only |
| Stamp duty and registration | Paid on purchase | Within the ₹1,50,000 80C limit, in the year of purchase | Old only |
You cannot claim both 80EE and 80EEA on the same loan, and both apply on interest over and above the ₹2 lakh already claimed under Section 24(b). The 80EE and 80EEA windows are closed for new loans, but if your loan was sanctioned within those windows you continue to claim the deduction each year.
Self-occupied and the new regime: a self-occupied home gets no interest deduction and no 80C principal in the new regime — the benefit is effectively nil. For a let-out home, interest still reduces your rental income under both regimes, but in the new regime any resulting loss cannot be set off against your salary or other income.
Self-occupied vs let-out — how the interest works
Self-occupied
- Interest capped at ₹2,00,000 a year (old regime)
- Drops to ₹30,000 if construction is not completed within 5 years
- Principal under 80C, up to ₹1.5 lakh
- New regime: no interest or principal benefit
Let-out
- Full interest deductible against rent — no ₹2 lakh cap
- Loss set off against other income limited to ₹2 lakh (old regime)
- Excess loss carried forward for 8 years
- New regime: interest offsets rent only, no set-off against salary
Old Act 1961 vs new Act 2025 — numbering
Income-tax Act, 1961
- Interest: Section 24(b)
- Principal: Section 80C
- Extra interest: 80EE / 80EEA
- Applies for FY 2025-26 and earlier
Income-tax Act, 2025
- House property income and deductions: Sections 20 to 25
- Principal: Section 123 (80C)
- Extra interest: Section 130 (80EE) / 131 (80EEA)
- Applies from Tax Year 2026-27 (1 April 2026)
Section numbers reflect the Income-tax Act, 2025 in force from 1 April 2026. The ₹2 lakh interest cap, the ₹1.5 lakh principal and the 80EE / 80EEA amounts carry forward from the old law. Confirm the live reference on the income-tax portal before filing.
A worked example
Neha, self-occupied home, old regime (30% slab)
| Interest paid ₹2,40,000; principal ₹1,80,000; 80C already ₹40,000 used | |
| Interest — Section 24(b) (capped) | ₹2,00,000 |
| Principal — Section 80C (₹1.5L minus ₹40k used) | ₹1,10,000 |
| Total deduction | ₹3,10,000 |
| Tax saved (30% + 4% cess) | ₹96,720 |
Neha’s interest of ₹2,40,000 is capped at ₹2,00,000 for a self-occupied home. Her principal of ₹1,80,000 is limited by her remaining 80C room of ₹1,10,000. In the new regime she would get none of this on a self-occupied home.
Related tools and guides
All income tax deductions →
Section 80C optimiser →
Home loan EMI calculator →
HRA exemption calculator →
Old vs new regime advisor →
Frequently asked questions
Can I claim home-loan tax benefits in the new regime?
For a self-occupied home, no — the new regime gives no interest deduction under Section 24(b) and no principal under 80C. For a let-out home, the interest still reduces your rental income under both regimes, but in the new regime any loss beyond the rent cannot be set off against your salary or other income. So the new regime largely removes the home-loan benefit for a home you live in.
How much home-loan interest can I claim?
For a self-occupied home, up to ₹2,00,000 a year under Section 24(b) in the old regime (₹30,000 if construction is not completed within five years). For a let-out home there is no cap on the interest itself, but the loss you can set off against other income is limited to ₹2,00,000 a year, with the excess carried forward for eight years.
Can I claim both the interest and the principal?
Yes, in the old regime. The interest is claimed under Section 24(b) (up to ₹2 lakh for a self-occupied home) and the principal repayment under Section 80C (within the ₹1.5 lakh limit). They are separate deductions, so a single EMI gives you benefits under both heads.
What is the difference between 80EE and 80EEA?
Both give an extra interest deduction over and above the ₹2 lakh under Section 24(b), for first-time buyers. 80EE (₹50,000) applied to loans sanctioned in FY 2016-17; 80EEA (₹1,50,000) applied to affordable-housing loans sanctioned between April 2019 and March 2022. You can claim only one, and only if your loan falls in that window — but if it does, you keep claiming it each year until the loan is repaid.
Can I claim HRA and a home-loan deduction together?
Yes, in genuine cases — for example if you live in a rented home in one city (claiming HRA) while owning and repaying a loan on a house elsewhere, or the owned house is let out. The home-loan interest and principal are separate from the HRA exemption. All of these are old-regime benefits.
Do the home-loan rules change under the Income-tax Act, 2025?
The amounts are unchanged. From Tax Year 2026-27 house property income and its deductions sit in Sections 20 to 25, principal moves to Section 123 and the extra-interest provisions to Sections 130 and 131, but the ₹2 lakh interest cap, the ₹1.5 lakh principal and the 80EE / 80EEA amounts are the same as before.
This page is a general guide for individual taxpayers and is not tax advice. Eligibility, limits and regime treatment depend on your specific facts, including completion timelines, co-ownership and loan-sanction dates. Section references to the Income-tax Act, 2025 apply from Tax Year 2026-27 (FY 2026-27); the Income-tax Act, 1961 applies for FY 2025-26 and earlier. Verify the current position on the income-tax portal or with your advisor before filing.