Archive · 24 Jul 2025
Home Loan Tax Benefits: What You Need to Know
Filing your taxes this year?
If you have a home loan, you can save money!
You can deduct up to ₹1.5 lakh of your principal repayment.
For the interest you pay, you can deduct up to ₹2 lakh each year if it's your own home.
If you are a first-time homebuyer, there are extra deductions available.
If you and someone else own the home loan together, you both can save on taxes.
If you sell a home and buy another, you may also avoid capital gains taxes.
Taxpayers can claim deductions on home loans when filing ITR for FY 2024-25.
Principal repayment up to ₹1.5 lakh can be claimed annually under Section 80C.
Interest deduction up to ₹2 lakh per annum is available under Section 24(b) for self-occupied houses.
Additional deductions are available for first-time buyers under Sections 80EE and 80EEA.
Joint home loan holders can separately claim deductions, potentially doubling tax savings.
- Who
- Homeowners.
- What
- Home loan tax benefits available when filing Income Tax Return (ITR) for FY 2024–25
- When
- When filing Income Tax Return (ITR) for FY 2024–25.
- Where
- In India.
- Why
- To help homeowners maximize their tax savings and understand key tax benefits.
- Section 80C Deduction
- Up to ₹1.5 lakh on principal repayment
- Section 24(b) Interest Deduction (Self-occupied)
- Up to ₹2 lakh per annum
- Section 80EE Deduction
- Additional ₹50,000 for loans sanctioned in FY 2016-17
- Section 80EEA Deduction
- Up to ₹1.5 lakh for affordable housing loans (April 2019 - March 2022)
- Capital Gains Exemption
- Under Section 54 for reinvesting gains in a new residential property