Home Loan Tax Saving Calculator

Your home loan earns two separate deductions under the old tax regime. Interest on a self-occupied home is deductible up to ₹2 lakh a year under Section 24(b). Principal repayment counts toward the ₹1.5 lakh Section 80C limit.

The 80C limit is shared with PPF, ELSS, EPF and life insurance premiums. That is why the calculator asks for your other 80C investments. If they already cover ₹1.5 lakh, your principal repayment adds no further saving.

The new regime removes both deductions for a self-occupied home. It offers lower slab rates and no tax on income up to ₹12 lakh after the Section 87A rebate. Compare the two results before you choose a regime for the year.

Savings fall as the loan ages. In the early years most of each EMI is interest, so you hit the ₹2 lakh cap easily. Later, interest drops below the cap and the deduction shrinks with it.

A let-out property is treated differently. Its full interest is deductible. Under the old regime, a loss from house property can be set off against other income only up to ₹2 lakh a year. The new regime allows no such set-off.

Joint borrowers who are also co-owners can each claim ₹2 lakh of interest and ₹1.5 lakh of principal. Stamp duty and registration paid in the year of purchase also count under 80C. Sell the house within five years of possession and the 80C claims already taken are added back to your income.

From 1 April 2026 these deductions sit in the Income-tax Act, 2025 under new section numbers. The limits shown here are unchanged. Confirm your final figures with a chartered accountant before filing.