Tax exemption from home loan

• Deduction for  Interest Paid on Housing Loan (Sec 24)

 The interest portion of the EMI paid for the year can be claimed as a deduction from your total income u/s 24.

• Deduction on Principal repayment ( Sec 80C)

The Principal portion of the EMI paid for the year is allowed as deduction u/s 80C. The maximum amount that can be claimed is up to Rs 1.5 lakhs. 

•  Section 80EE Income Tax Deduction for Interest on Home Loan

you must satisfy before you go on to claim the benefit under this section –

• This is the 1st house you have purchased
• Value of this house is Rs 50 lakhs or less
• Loan taken for this house is Rs 35 lakhs or less
• Loan has been sanctioned by a Financial Institution or a Housing Finance Company
• Loan has been sanctioned between 01.04.2016 to 31.03.2017
• As on the date of sanction of loan no other house is owned by you

If you are able to satisfy conditions of both Section 24 and Section 80EE, both the benefits shall apply to you. First exhaust your limit under section 24 and then go on to claim the additional benefit under section 80EE.