Section 24(b)
₹2 Lakh
Max Limit / Year
Section 80C
₹1.5 Lakh
Principal Repayment
Section 80EEA
₹1.5 Lakh
First Time Buyer
01Section 24(b) - Interest Deduction
Under Section 24(b), homeowners can claim a deduction of up to ₹2 lakh on the interest portion of their home loan for a self-occupied property. This deduction is available from the year in which the construction of the house is completed.
If the house is rented out, there is no upper limit on the interest deduction, although the loss from house property that can be set off against other income is capped at ₹2 lakh per annum.
02Section 80C - Principal Repayment
The principal component of your home loan EMI is eligible for deduction under Section 80C of the Income Tax Act. The maximum deduction allowed is ₹1.5 lakh.
To claim this deduction, the property must not be sold within 5 years of possession. If sold earlier, the deduction claimed will be added back to your income in the year of sale.
03Section 80EEA - First Time Buyer
Introduced to promote affordable housing, Section 80EEA offers an additional deduction of ₹1.5 lakh on home loan interest for first-time homebuyers.
- Stamp value of property should not exceed ₹45 lakh
- Loan must be sanctioned between 1 April 2019 and 31 March 2022
- The individual should not own any other residential property
