Question
What are the tax benefits on a home loan?
Answer
Bottom line: Under the old regime, you can claim up to ₹2 lakh of interest and ₹1.5 lakh of principal a year.
1. Interest (Section 24b)
Up to ₹2,00,000 on a self-occupied house; this is not available under the new regime.
2. Principal (Section 80C)
Up to ₹1.5 lakh, within the overall 80C limit, old regime only.
3. Let-out property
Interest has no cap, but the loss you can set off against other income is limited to ₹2 lakh a year.
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This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.