Complete Guide to Home Loan Interest Rates & Tax Savings (Sec 24 & 80C)

Home loans offer substantial income tax benefits under Indian tax laws. Understanding how to structure your principal and interest repayments can save lakhs in taxes annually.

Deduction under Section 24(b) - Interest Repayment

You can claim a deduction of up to ₹2,000,000 per financial year for interest paid on a self-occupied property loan. For rented-out properties, the full interest paid can be set off against rental income.

Deduction under Section 80C - Principal Repayment

Principal repayments qualify for deduction up to ₹150,000 annually under Section 80C, alongside stamp duty and registration fees paid during the year of purchase.