Quick Summary
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
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The old tax regime is generally more advantageous for homeowners as it allows significant deductions on home loan interest and principal repayment, whereas the new tax regime removes most of these benefits.
Under the old tax regime, the maximum deduction allowed for interest paid on a self-occupied property is ₹2 lakh per year.
No, the new tax regime does not allow any deduction for the principal repayment of your home loan.
Under the new tax regime, for a let-out property, you can only deduct the interest paid up to the amount of rental income you receive. Any excess loss cannot be used to offset other income.
Yes, if you have a joint home loan, each co-owner and co-borrower can claim the tax deductions individually, effectively doubling the potential benefit.
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