Tax Benefit on Home Loan (Sec. 24,80C& 80EEA)

The repayment of Home Loan :- Repayment of Principal

                                                 - Repayment of Interest

these are claimed as tax deductions under different sections while filing the Income Tax Return.

Section 80 C : Principal amount of Home loan

The amount paid as Repayment of Principal Amount of Home Loan by an Individual/ HUF is allowed as tax deduction under Section 80C of the Income Tax Act. The maximum tax deduction allowed under Section 80C is Rs. 1,50,000. 

Section 24 : Interest on Home loan

The maximum tax deduction allowed under Section 24 of a self-occupied property is subject to a maximum limit of Rs. 2 Lakhs (increased in Budget 2014 from 1.5 Lakhs to Rs. 2 Lakhs).

Section 80EEA : Interest on Home loan (1st Time Buyers)

This Deduction of Section 80EEA would be applicable only in the following cases:-

1. This deduction would be allowed only if the stamp duty value of the property purchased is less than Rs. 45 Lakhs. 
2. The loan should be sanctioned between 1st April 2019 and 31st March 2021.

Section	Deduction allowed	Allowed for
Section 24	Rs. 2,00,000	Interest repayment
Section 80C	Rs. 1,50,000	Principal repayment
Section 80EEA	Rs. 1,50,000	Interest repayment

Type of Property	Self Occupied Property		Not Self Occupied Property
Completion Status	Completed within 5 years	Not completed within 5 years	Completed within 5 years	Not completed within 5 years
Deduction Allowed	Rs. 2,00,000	Rs. 30,000	No Limit	No Limit