Loan Tax Savings Calculator
Calculate your potential tax savings on home loan interest and principal repayment
Your Tax Savings
Under Section 24(b) of Income Tax Act, you can claim up to ₹2 lakhs as deduction on home loan interest. Additional ₹50,000 can be claimed under Section 80EEA for first-time home buyers.
Tax Benefits Breakdown
Understanding the various tax deductions available on your home loan
Section 24(b)
Interest payment deduction up to ₹2,00,000 per year
- Applicable for self-occupied property
- No upper limit for rented property
Section 80C
Principal repayment deduction up to ₹1,50,000 per year
- Includes registration and stamp duty charges
- Part of overall 80C limit
Section 80EEA
Additional interest deduction up to ₹50,000 for first-time buyers
- Property value should not exceed ₹45 lakhs
- Loan sanctioned between Apr 2019 - Mar 2022
Note: Tax benefits are subject to changes in income tax laws. Please consult a tax professional for detailed advice.
Loan Type Comparison
Compare different types of loans and their tax benefits
| Features | Home Loan | Personal Loan | Education Loan |
|---|---|---|---|
| Interest Rate Range | 6.5% - 9% | 10.5% - 24% | 7% - 15% |
| Interest Deduction Limit | Up to ₹2 Lakhs* | Not Available | No Limit |
| Principal Deduction | Up to ₹1.5 Lakhs | Not Available | Up to ₹1.5 Lakhs |
| Tax Benefit Section | 24(b), 80C, 80EEA | None | 80E |
| Maximum Tenure | 30 Years | 5 Years | 15 Years |
| Security Required | Property | No Security | Co-borrower |
Additional Benefits
- First-time homebuyers get additional ₹50,000 deduction under 80EEA
- Joint home loans can double the tax benefit limit
Important Notes
- *For self-occupied property only
- Benefits subject to change as per tax laws
Your Savings Summary
Comprehensive breakdown of your tax benefits
Annual Tax Benefits
Monthly Breakdown
Tax Benefits Progress
Additional Benefits Available
- Eligible for additional ₹50,000 deduction under Section 80EEA
- Property registration charges can be claimed under Section 80C
Tax Rules Guide
Essential rules and regulations for home loan tax benefits
Key Eligibility Rules
Property Ownership
Property must be either self-occupied or rented. Under-construction properties have different rules.
Construction Completion
Construction must be completed within 5 years from the end of financial year in which loan was taken.
Loan Purpose
Loan must be used for purchase, construction, repair, renovation or extension of residential property.
Required Documents
- Loan Agreement Copy
- Interest Certificate
- Property Registration Documents
- Completion Certificate
Important Deadlines
- Form 16 Submission: July 31
- Tax Return Filing: March 31
- Interest Certificate: April 30
Pre-construction interest can be claimed in 5 equal installments after completion.
Joint loans can help maximize tax benefits as each co-borrower can claim deductions separately.
Frequently Asked Questions
Common questions about home loan tax benefits
You can claim up to ₹2 lakhs for interest under Section 24(b) and up to ₹1.5 lakhs for principal repayment under Section 80C. First-time homebuyers can get an additional ₹50,000 deduction under Section 80EEA.
Pre-construction interest can be claimed in 5 equal installments after the construction is completed. The claim starts from the financial year in which the construction is completed.
In joint home loans, each co-borrower can claim tax deductions separately as per their loan contribution ratio. This effectively increases the total tax benefit available on the loan.
You need the loan agreement, interest payment certificate from the lender, property registration documents, and completion certificate (for under-construction properties).
Yes, you can claim tax benefits on multiple home loans. However, the total deduction limits remain the same and need to be distributed across all loans.
Need More Help?
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