Tax Planning
Home Loan Tax Benefit Calculator — Section 80C & 24(b)
A home loan is one of India's most tax-efficient products. Calculate your exact annual saving on interest (Sec 24b, up to ₹2L) and principal repayment (Sec 80C, up to ₹1.5L) under the old tax regime.
Annual Tax Saving — Year 1
*Old regime only. New regime offers no Sec 24(b)/80C benefit. Consult your CA for final computation. 4% health & education cess included.
Year 1 EMI Composition
Frequently Asked Questions
Section 24(b) allows up to ₹2 lakh deduction per year on home loan interest for a self-occupied property under the old tax regime. For let-out properties, the full interest is deductible without limit.
Yes, under the old regime. Section 80C allows up to ₹1.5L on principal repayment (shared with PPF, ELSS). Section 24(b) allows up to ₹2L on interest. Maximum combined home loan deduction is ₹3.5L per year.
No. The new tax regime does not allow Sec 24(b) or 80C deductions. If your home loan interest exceeds ₹2L/year, staying in the old regime may result in significantly lower net tax — consult your CA.
The ₹2L annual cap on Sec 24(b) applies to self-occupied property only. Construction must complete within 5 years of loan sanction. For under-construction property, pre-possession interest is claimed in 5 equal instalments after possession.
Relevant for home loan borrowers across Ahmedabad and Gujarat comparing old vs new tax regime.