Tax Benefits on Home Loans in India: A Comprehensive Guide

Your home loan is not just an expense; it's also a powerful tax-saving instrument under the Indian Income Tax Act. You can claim deductions under two key sections:

• Section 24(b): Claim a deduction of up to ₹2,00,000 per year on the interest portion of your EMI.
• Section 80C: Claim a deduction of up to ₹1,50,000 on the principal repayment portion. This falls under a shared limit with other instruments like PF, ELSS, etc.

These benefits can effectively reduce your taxable income, leading to substantial savings every year.