{"id":718,"date":"2025-10-24T05:52:46","date_gmt":"2025-10-24T05:52:46","guid":{"rendered":"https:\/\/easyhomefinance.in\/knowledge-hub\/?p=718"},"modified":"2025-12-23T14:23:29","modified_gmt":"2025-12-23T14:23:29","slug":"tax-benefits-you-get-on-home-loans","status":"publish","type":"post","link":"https:\/\/easyhomefinance.in\/knowledge-hub\/tax-benefits-you-get-on-home-loans\/","title":{"rendered":"Tax Benefits You Get on Home Loans"},"content":{"rendered":"\n

How your home loan helps you save more than just rent.<\/em><\/p>\n\n\n\n

Buying a home is one of the biggest financial steps most of us take \u2014 and thankfully, it also comes with some generous perks. If you’re repaying a home loan in India<\/strong>, you\u2019re likely eligible for tax benefits<\/strong> that can ease your burden and boost your savings each year.<\/p>\n\n\n\n

Think of it this way: while you\u2019re building equity in your dream home, the government is helping you lower your taxable income. Here\u2019s a simplified breakdown of the key home loan tax benefits<\/strong> you should know \u2014 and how to make the most of them.<\/p>\n\n\n\n

1. Save on Principal Repayment with Section 80C<\/strong><\/p>\n\n\n\n

When you repay the principal amount of your home loan<\/strong>, you can claim a deduction of up to \u20b91.5 lakh per year<\/strong> under Section 80C<\/strong> of the Income Tax Act.<\/p>\n\n\n\n

This benefit is available whether you\u2019ve bought a ready-to-move-in home or a property under construction \u2014 as long as the construction is completed within five years.<\/p>\n\n\n\n

The only catch? If you sell the home within five years, the deduction claimed gets reversed. So, this benefit is really designed to encourage long-term ownership.<\/p>\n\n\n\n

2. Get Relief on Interest Payments with Section 24(b)<\/strong><\/p>\n\n\n\n

This one\u2019s a big win for most borrowers. Under Section 24(b)<\/strong>, you can claim up to \u20b92 lakh per year<\/strong> on the interest portion<\/strong> of your home loan EMI \u2014 provided the property is self-occupied.<\/p>\n\n\n\n

If your home is rented out or vacant, there\u2019s actually no cap on the interest deduction \u2014 a great bonus for real estate investors.<\/p>\n\n\n\n

And if your home is still under construction? You can still claim pre-construction interest<\/strong>, but it gets divided into five equal parts and claimed after possession.<\/p>\n\n\n\n

3. First-Time Buyer? You Could Save Even More<\/strong><\/p>\n\n\n\n

If you’re buying your first home<\/strong>, the government gives you extra benefits<\/strong> to make housing more affordable.<\/p>\n\n\n\n

Depending on when your loan was sanctioned, you may be eligible for:<\/p>\n\n\n\n