What tax deductions can I get for repayment of home loan?
Primarily, you can get two types of deductions for a home loan, one on repayment of the principal amount of the loan and the other on the interest on the loan. Whether you reside in your house or give it out on rent, the repayment of principal amount of loan will qualify for deduction under Section 80C. The maximum amount of deduction available for repayment of principal amount is Rs 1 lakh. Under Section 24(b), up to Rs 1.5 lakh can be claimed as deduction under the head ‘Income from House Property’ for the interest component of a loan in case of a self-occupied house. However, the full amount of interest can be claimed as deduction in case the house is given on rent.
Primarily, you can get two types of deductions for a home loan, one on repayment of the principal amount of the loan and the other on the interest on the loan. Whether you reside in your house or give it out on rent, the repayment of principal amount of loan will qualify for deduction under Section 80C. The maximum amount of deduction available for repayment of principal amount is Rs 1 lakh. Under Section 24(b), up to Rs 1.5 lakh can be claimed as deduction under the head ‘Income from House Property’ for the interest component of a loan in case of a self-occupied house. However, the full amount of interest can be claimed as deduction in case the house is given on rent.
