A home loan is one of the most tax-efficient debt instruments available to Indian taxpayers under the Old Tax Regime.

1. Section 24(b) – Interest Deduction up to ₹2,00,000

Homeowners can claim up to ₹2 Lakh per financial year on interest paid for a self-occupied residential property. For rented-out properties, the entire interest can be set off against rental income subject to intra-head loss limits.

2. Section 80C – Principal Repayment up to ₹1,50,000

The principal component of your monthly EMIs qualifies for tax deductions under the overall ₹1.5 Lakh limit of Section 80C (inclusive of EPF, PPF, and ELSS investments).

3. Joint Ownership Multiplier

If you and your spouse co-own the property and co-sign the loan, both individuals can independently claim up to ₹2 Lakh on interest and ₹1.5 Lakh on principal, doubling total household tax deductions to ₹7,00,000!