Taking a home loan not only helps you own a house but also offers significant income tax benefits. You can claim deductions on both the principal and interest components of your EMI. Under Section 80C, you can claim up to ₹1.5 lakh per year on principal repayment. Under Section 24(b), up to ₹2 lakh per year can be claimed on interest paid for self-occupied property. If you’re a first-time homebuyer, additional deductions are available under Section 80EE (₹50,000) or 80EEA (₹1.5 lakh), subject to eligibility. Co-borrowers who are co-owners can also claim these benefits individually, effectively doubling the savings. To claim these deductions, ensure the construction is complete, possession is taken, and proper documentation is maintained. With smart planning, your home loan can become a powerful tool for reducing your annual tax outgo.

A home loan offers significant tax benefits under the Income Tax Act, helping you save money while building your dream home. Under Section 80C, you can claim up to ₹1.5 lakh annually on the principal repayment. Additionally, under Section 24(b), you can avail up to ₹2 lakh per year on interest paid for a self-occupied property. For joint loans, both co-borrowers can claim these deductions individually, doubling the benefits. First-time homebuyers can also enjoy additional deductions under Section 80EE or 80EEA, subject to conditions. These tax benefits effectively reduce your taxable income and overall tax liability.