Home Loans
“₹2 Crore Home Loan EMI: Bank-wise EMI for 5–30 Years”
Read articleHome Loan Tax Saving Calculator
Calculate the income tax your home loan saves each year under the old and new regimes.
Net Income Tax Benefit₹75,000
Home Loan Tax Savings Analyzer
Your full remaining tenure, year by year — interest, principal and tax saved.
Total Tax Saved (Full Tenure)₹10,41,422
Effective Interest Cost₹20,48,703
- Tax saving is highest in 2027-28, at ₹75,000.
- It gradually declines once your annual interest drops below the ₹2,00,000 Section 24(b) cap, starting 2026-27.
- 2026-27 figures assume current income-tax rules continue unchanged — actual future Union Budgets may revise them.
* Figures assume standard tax exemptions under Section 24 and 80C respectively. Consult your tax advisor for personal regime planning.
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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.
Ambak's home buying advisor guide you from first question to final approval
Frequently Asked Questions
Common questions about home loan tax saving and how this calculator works.
How much tax can I save on a home loan?
Answered on 2026-09-17 Written by Ambak Editorial Team, Home loan and property finance research
Under the old regime, up to ₹2 lakh of interest under Section 24(b) and up to ₹1.5 lakh of principal under Section 80C each year. At the 30% slab plus 4% cess, that is a saving of about ₹1.09 lakh a year when both limits are fully used.
Can I claim home loan interest in the new tax regime?
Answered on 2026-09-17 Written by Ambak Editorial Team, Home loan and property finance research
Not for a self-occupied house. For a let-out property, interest is deductible from rental income, but any loss that remains cannot be set off against salary or carried forward.
Can both co-borrowers claim the tax benefit?
Answered on 2026-09-17 Written by Ambak Editorial Team, Home loan and property finance research
Yes, if each is a co-owner and a co-borrower paying the EMI. Each can claim up to ₹2 lakh of interest and ₹1.5 lakh of principal in their own return.
Is interest paid before possession deductible?
Answered on 2026-09-17 Written by Ambak Editorial Team, Home loan and property finance research
Yes. Interest paid before construction is complete is claimed in five equal parts, starting in the year you get possession. These parts count within the ₹2 lakh yearly cap.
Does the calculator include stamp duty in 80C?
Answered on 2026-09-17 Written by Ambak Editorial Team, Home loan and property finance research
It uses the other 80C investments you enter. If you paid stamp duty and registration this year, add that amount to your 80C figure, subject to the ₹1.5 lakh total limit.
Do the sections change under the Income-tax Act, 2025?
Answered on 2026-09-17 Written by Ambak Editorial Team, Home loan and property finance research
The Act took effect on 1 April 2026 and renumbered the sections. The deduction limits for house property interest and principal repayment carried over unchanged.
