Purchase new house

interest will be allowed under the head house property

and repayment of loan will be under deduction 

agree with above reply

yes, u get deducton............

Interest on housing loan will be allowed as a deduction under house property subject to a limit of Rs. 1.5 lakhs in case of self occupied property and in case of letout property entire amount of interest can be claimed as a deduction. Principal amount can be claimed deduction under section 80C subject to an overall limit of Rs. 1 lakh.