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Guide

Home Loan Tax Benefits

Under the new tax regime, the Section 24(b) deduction on interest for a self-occupied property is not available, and neither is the Section 80C deduction on principal.

Section 24(b) cap, self-occupied, old regime
₹2,00,000per year

Not available under the new regime for a self-occupied property.

as of 2026-08-17· Income Tax Act, Section 24verified
80C on principal
₹1.5 lakh
Old regime only; shared with all other 80C claims
Repairs / renovation
₹30,000
Sub-limit within 24(b), not ₹2 lakh
Pre-construction interest
1/5th per year
From the year construction completes

Most pages on this topic still describe the old-regime position as though it were current. If you are on the new regime — which is now the default — your home loan carries no income tax benefit on a self-occupied house.

By Nishit Kumar, Founder & Editor
Updated 17 August 2026

What to know

The distinction that decides the answer is self-occupied versus let-out. For a let-out property the interest deduction is not capped at ₹2 lakh in the same way, though the loss that can be set off against other heads of income is limited, with the remainder carried forward. For a self-occupied property under the old regime, ₹2 lakh is the ceiling regardless of how much interest you actually paid.

For joint loans, both borrowers can claim the limits individually — but only if each is both a co-owner of the property and a co-borrower on the loan. Adding a spouse to the loan without adding them to the title achieves nothing at all. This is the most common and most expensive error on this topic.

Your numbers

₹15 L
₹0₹15,00,000₹50 Cr
₹2 L
₹0₹2,00,000₹50 L

Only usable under the old regime.

Tax under the new regime
₹97,500
New regime tax
₹97,500
Old regime tax
₹1,95,000
New regime saves you
₹97,500
Effective tax rate
6.50%
Monthly take-home
₹1,16,875

What this means.The new regime wins here. You would need deductions above roughly ₹5,43,750 for the old regime to catch up.

View the full breakdown (9 rows) →
New regimeOld regime
Gross income₹15,00,000₹15,00,000
Standard deduction₹75,000₹50,000
Other deductions₹0₹2,00,000
Taxable income₹14,25,000₹12,50,000
Tax before rebate₹93,750₹1,87,500
Section 87A rebate₹0₹0
Surcharge₹0₹0
Health & education cess₹3,750₹7,500
Total tax₹97,500₹1,95,000

Questions

Can I claim home loan interest under the new tax regime?

Not for a self-occupied property — the Section 24(b) deduction is not available under the new regime, and nor is the 80C deduction on principal. The treatment differs for a let-out property. Since the new regime is the default, check which regime you are actually on before assuming a benefit.

How much tax benefit do I get on a home loan?

Under the old regime, up to ₹2 lakh a year of interest under Section 24(b) for a self-occupied property, and principal repayment within the ₹1.5 lakh Section 80C limit — which you are probably already using for EPF, insurance premiums and ELSS. Under the new regime, nothing on a self-occupied property.

Both my spouse and I are on the loan. Can we both claim?

Yes, each within their own limits — but only if both of you are co-owners of the property and co-borrowers on the loan, and each claims in proportion to your share. Being a co-borrower without being a co-owner gives you no deduction.

Related reading

Sources

Every figure on this page is traced to the document it came from. Where a claim rests on a regulator or an institution’s own rate card, that is the link below — not a summary of it.

  1. [2]Section 24 — deductions from income from house property— Income Tax Department, Government of IndiaPrimary
Worth knowing.Rates, fees and terms change frequently and vary by applicant. Everything here is general information, not personalised advice. Confirm the current terms directly with the institution before you apply. How we research and rate.