Home Loan Tax Benefit – How to Save Income Tax on Your Home Loan?
A home loan offers significant tax benefits under the Income Tax Act, helping you save money while building your dream home. Under Section 80C, you can claim up to ₹1.5 lakh annually on the principal repayment. Additionally, under Section 24(b), you can avail up to ₹2 lakh per year on interest paid for a self-occupied property. For joint loans, both co-borrowers can claim these deductions individually, doubling the benefits. First-time homebuyers can also enjoy additional deductions under Section 80EE or 80EEA, subject to conditions. These tax benefits effectively reduce your taxable income and overall tax liability.