Do I get any tax benefit under the new regime?

For self-occupied property: NO — no deductions under new regime. For LET-OUT property: interest deduction is available under new regime with restrictions. If you have a home loan and are salaried, staying with OLD regime is almost always better.

When can I start claiming home loan tax benefits?

From the year the property is completed and possession received. Interest paid DURING construction period (pre-EMI interest) can be claimed in 5 equal instalments starting from the year of completion. Principal claims start only from year of possession.

What if I have two home loans?

For self-occupied: only ONE property qualifies for the ₹2L interest cap. Second property is deemed let-out, and rental income (or notional rent) becomes taxable — but full interest is deductible without the ₹2L cap on the second one.

Do I get any tax benefit under the new regime?

For self-occupied property: NO — no deductions under new regime. For LET-OUT property: interest deduction is available under new regime with restrictions. If you have a home loan and are salaried, staying with OLD regime is almost always better.

When can I start claiming home loan tax benefits?

From the year the property is completed and possession received. Interest paid DURING construction period (pre-EMI interest) can be claimed in 5 equal instalments starting from the year of completion. Principal claims start only from year of possession.

What if I have two home loans?

For self-occupied: only ONE property qualifies for the ₹2L interest cap. Second property is deemed let-out, and rental income (or notional rent) becomes taxable — but full interest is deductible without the ₹2L cap on the second one.

Home Loan Tax Benefit Calculator

Combined tax savings under Section 80C (principal, ₹1.5L cap) + Section 24(b) (interest, ₹2L cap). Old vs new regime comparison.

Result

Annual tax saved (Year 1)

₹87,238

Annual EMI₹34,713/month × 12 = ₹416,555
Year 1 principal component₹79,609
Year 1 interest component₹336,946
80C eligible (max ₹1.5L across all)After 50,000 other 80C₹79,609
24(b) eligible (max ₹2L)₹200,000
Tax saved on 80C at 30% slab₹23,883
Tax saved on 24(b) at 30% slab₹60,000
Effective interest rate (after tax benefit)Real cost of loan post tax benefit6.92%

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How to use this calculator

Enter your outstanding home loan, interest rate, remaining tenure.
Choose your marginal tax slab.
Enter other 80C investments to see how much room remains for home loan principal.
Read tax saved in Year 1 + effective post-tax interest rate.

About this tool

Owning a home in India gives you TWO tax benefits: Section 80C (principal repayment, up to ₹1.5L/year combined with other 80C) and Section 24(b) (interest paid, up to ₹2L/year for self-occupied property, unlimited for let-out). BOTH are available only under the OLD tax regime — new regime does not allow either. First-time home buyers can additionally claim Section 80EE / 80EEA for extra interest deduction. This calculator shows YEAR 1 tax savings — in later years principal component grows and interest shrinks, so tax profile changes gradually.

Frequently asked

Section 80C: principal repayment up to ₹1.5L/year (combined with all other 80C). Section 24(b): interest up to ₹2L/year for self-occupied home (unlimited for let-out property). Section 80EE/EEA: additional ₹50K interest deduction for first-time buyers meeting criteria. ALL only under old regime.

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