Claim Deduction for Home Loan
Buying a home is a major milestone—and often one of the biggest financial commitments. While a home loan is a long-term debt, it comes with multiple tax benefits that can ease the financial burden.
A home loan has two components:
- Principal
- Interest
You can claim deductions on both under different sections of the Income Tax Act:
- Section 80C: Deduction on the principal repayment of the home loan (up to ₹1.5 lakh per year).
- Section 24(b): Deduction on the interest paid (up to ₹2 lakh per year) under Income from House Property.
- Section 80EE & 80EEA: Additional benefits for first-time homebuyers, subject to certain conditions.
Steps to Claim Deduction for Home Loan
- Navigate to File > Deductions
- Select Section 80CCE card
- Enter the principal amount paid during the year under Section 80C
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