Calculate income tax saved on your home loan under Section 24(b), Section 80C and Section 80EEA. See annual & lifetime tax savings, plus your effective post-tax EMI.
Most Pune buyers leave ₹3–5L on the table because they pick the wrong loan structure. We help you optimize before you sign.
A home loan is one of the most tax-efficient borrowings available to Indian residents. Under the Old Tax Regime, you can claim deductions under three different sections of the Income Tax Act — Section 24(b), Section 80C and Section 80EEA — bringing your total potential tax shield to over ₹4 Lakh per year, per borrower.
For a salaried professional in the 30% slab paying interest on a ₹50 Lakh loan, this translates to ~₹78,000–₹85,000 of actual tax saved every year, which directly reduces your effective post-tax EMI.
This is the largest deduction. Under Section 24(b) of the Income Tax Act, you can claim interest paid on a home loan as a deduction against your taxable income.
Section 80C allows a deduction of up to ₹1,50,000 per year on the principal portion of your home loan EMI. This limit is shared with other 80C investments — PPF, ELSS, EPF, life insurance premiums, NSC, tax-saving FDs, tuition fees, etc.
Stamp duty and registration charges paid on the property are also deductible under 80C — but ONLY in the year of payment.
Section 80EEA provides an additional ₹50,000 deduction on home loan interest, over and above the ₹2L allowed u/s 24(b). To qualify, ALL of the following must be met:
Note: 80EEA is closed for fresh sanctions after March 2022, but homebuyers whose loans were sanctioned within the eligible window continue to claim it for the full duration of the loan.
| Tax Regime | Section 24(b) | Section 80C | Section 80EEA | Best For |
|---|---|---|---|---|
| Old Regime | ✓ Up to ₹2L | ✓ Up to ₹1.5L | ✓ Up to ₹50K | Home loan + 80C investments |
| New Regime (default) | ✗ Not allowed (self-occupied) | ✗ Not allowed | ✗ Not allowed | No tax-saving investments |
Most home loan borrowers in Pune are better off staying in the Old Regime. Run a comparison every year — the choice can be changed annually if you're salaried.
If you and your spouse jointly own and jointly borrow for a property, both of you can independently claim:
Conditions: Both must be co-owners as per the registered sale deed AND co-borrowers on the loan agreement. The split is in the proportion of EMI contribution (typically 50:50 if jointly funded).
For Section 24(b), yes — interest paid to a relative on a genuine loan (with a written agreement and demonstrable repayment trail) is deductible. However, Section 80C and 80EEA require the loan to be from a notified financial institution (bank, HFC, LIC), so principal repayment to a relative is NOT deductible u/s 80C.
You can claim Section 24(b) on both properties. From FY 2019-20 onwards, both can be designated as self-occupied (combined limit ₹2L on interest). 80C is property-agnostic — overall ₹1.5L limit applies.
In an EMI, the early years are interest-heavy. For a ₹50L loan at 8.5% over 20 years, year-1 interest is roughly ₹4.2L and principal repayment is ₹1.0L. The interest portion drops every year while principal rises — your tax savings shape changes accordingly.
No. Only the interest portion (u/s 24(b), max ₹2L) and principal portion (u/s 80C, max ₹1.5L within the overall 80C limit) are deductible. The EMI itself is not a deduction line — the components are split.
For interest, no — deduction starts from the year construction is COMPLETED and possession received. Interest paid during construction (pre-EMI interest) is bundled and claimed in 5 equal instalments from the year of completion. Principal is deductible only from the year of completion.