How much can I claim on a home loan?

Up to ₹1,50,000 a year of principal under Section 80C, shared with EPF, LIC, ELSS and PPF, and up to ₹2,00,000 a year of interest under Section 24(b) for a self-occupied house. A let-out property has no cap on the interest claim.

Why does my benefit shrink in later years?

Because the interest component of your EMI falls every year, so there is less to claim under Section 24(b). The 80C claim can also max out once annual principal repayment passes the ₹1.5 lakh cap.

Can both joint owners claim the deduction?

Yes, if both are co-owners and co-borrowers and both contribute to the repayment. Each may claim up to the full limit against their own share, which can double the household benefit. Confirm the split with your chartered accountant.

Home Loan Tax Benefit Calculator

Q: Do these tax benefits apply under the new tax regime?

No. Sections 80C and 24(b) are available only under the OLD tax regime. The new regime is now the default, and under it these deductions do not apply at all. If you have not specifically opted for the old regime, your saving from this is nil.

Work out what your home loan saves you in tax each year. Principal under Section 80C up to ₹1.5 lakh, interest under Section 24(b) up to ₹2 lakh on a self-occupied house.

Your numbers

Move a slider or type a number. Everything updates instantly, and the link above carries your values so you can share or save them.

Home loan amount

Fifty lakh

Interest rate

% p.a.

Tenure

months

Your income tax slab

Your highest marginal rate under the old regime, before cess.

80C already used by other things

EPF, LIC, ELSS, PPF, tuition fees. These share the same ₹1.5 lakh cap.

Is this house self-occupied?

Self-occupied caps the interest claim at ₹2 lakh. A let-out property has no cap on the interest deduction.

Old tax regime only

Sections 80C and 24(b) are available only under the old tax regime. The new regime is now the default, and under it these deductions do not apply at all. If you have not specifically opted for the old regime, your saving here is nil.

Tax saved in year one

₹89,853

at a 30% slab, before cess

Year one breakdown

Principal repaid: ₹99,510
Claimable under 80C: ₹99,510
Interest paid: ₹4,21,182
Claimable under 24(b): ₹2,00,000
Total deduction: ₹2,99,510

Over the whole loan

Total deductions claimed: ₹63,27,155
Total tax saved: ₹18,98,147

The 80C claim falls away in later years once annual principal repayment exceeds the cap, and the 24(b) claim shrinks as the interest component reduces.

The caps, in plain terms

Section 80C — principal repaid, up to ₹1,50,000 a year, shared with EPF, LIC, ELSS and PPF.
Section 24(b) — interest paid, up to ₹2,00,000 a year for a self-occupied house, uncapped if it is let out.

This is a general estimate, not tax advice. Speak to a qualified chartered accountant about your own return.

How this is calculated

80C = min(principal repaid, ₹1,50,000). 24(b) = min(interest paid, ₹2,00,000) if self-occupied. Tax saved = deduction x slab rate.

Nothing is hidden. The same formula runs in a shared, unit-tested library used by every calculator on this site.

Tax Benefit

Section 80C and Section 24(b), old regime

Related calculators

These numbers are indicative. Your actual offer depends on the lender.

This calculator assumes the rate stays the same for the whole tenure. Most loans in India are floating rate, so your EMI can move when the RBI changes rates. Tell us your real situation and we will give you a figure you can plan around.

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Questions

Tax Benefit questions

What people ask us most about this calculation.

Numbers are one thing. An approval is another.

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