Home Loan Interest Tax Deduction Under Old or New Tax Regime

Chaitra Seetharam | Last updated: 27 September 2025

Save Share

Quick Summary

Homeowners in India can significantly reduce their tax burden through home loan deductions, but the availability of these benefits depends heavily on the chosen tax regime. The old tax regime offers substantial deductions for both interest paid (up to ₹2 lakh for self-occupied properties) and principal repayment (under Section 80C, up to ₹1.5 lakh), along with additional benefits for first-time buyers. In contrast, the new tax regime largely eliminates these deductions, offering limited relief only for interest on let-out properties up to the rental income earned. Choosing between the two regimes is crucial for maximising tax savings, especially for those with significant home loan commitments.

For homeowners in India, the Equated Monthly Installment (EMI) is a major financial commitment. However, the tax benefits on a home loan can provide significant relief. The key question is: are these benefits available under both tax regimes? This is important for your financial planning: substanti

Daily Limit Reached

You have reached your daily limit of 2 Free Articles

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Articles Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

BEST VALUE

2 YEAR PLAN

3,499

(Excl. of GST ₹629)

1 YEAR PLAN

1,999

(Excl. of GST ₹359)

3 MONTHS PLAN

999

(Excl of GST ₹179)

View all CCI PRO benfits

Already a PRO member? Login here for an ad-free experience.

52 Views Comment Share Income Tax Report

About the Author

Chaitra Seetharam

Finance Professional

I write on Income Tax, TDS, ITR filing, banking rules, investment schemes, and financial law updates in India. My articles simplify complex tax provisions, compliance requirements, and policy changes to help taxpayers, professionals, senior citizens, and businesses stay informed and financially aware.

View Articles

Comments :