Home Loan Tax Benefits: Sections 24, 80C and 80EEA Explained
By CA Aman Singhal18 June 20265 min read
A home loan is one of the biggest tax-savers available to an individual — your EMI gives you deductions on both the interest and the principal. Here is exactly what you can claim for FY 2025-26.
Interest — Section 24(b)
For a self-occupied home, you can deduct home-loan interest up to ₹2,00,000 per year. For a let-out property the full interest is allowed, though the overall loss you can set off against other income is capped at ₹2 lakh a year.
Principal — Section 80C
The principal portion of your EMI is deductible up to ₹1,50,000 under Section 80C (shared with your other 80C investments). Stamp duty and registration charges also qualify, in the year you pay them.
Section 80EEA — affordable housing
An additional ₹1.5 lakh interest deduction was available under 80EEA — but only for loans sanctioned between April 2019 and March 2022, so it does not apply to new loans.
Important: the new regime
Home-loan interest on a self-occupied home is not deductible under the new regime. This is one of the main reasons home-owners with a sizeable loan often still come out ahead on the old regime — always compare both.
Work out your EMI and interest with our EMI Calculator, then let a CA make sure you claim every rupee of benefit at filing time.
This article is for general information based on provisions for FY 2025-26 and is not individual tax advice. Rules change and exceptions apply — please confirm with a qualified Chartered Accountant before acting.