1. Interest Deduction – Section 24(b)

You can claim up to ₹2 lakh per year on interest paid for a self‑occupied home loan

Under Budget 2025, this limit is ₹3 lakh for let-out properties.

2. Principal Repayment – Section 80C

Principal EMI, stamp duty, and registration together qualify for deduction up to ₹1.5 lakh under 80C.

Remember, under the old tax regime.

3. First-Time Buyer Boost – Section 80EEA

Extra ₹1.5 lakh deduction on interest, available in addition to Section 24(b)

Eligibility:

Loan sanctioned from 1 Apr 2019 to 31 Mar 2022

Property stamp value ≤ ₹45 lakh, carpet area ≤60 sq m (in metros)

You and co-borrowers must not own another home

4. Section 80EE (older scheme)

Offers ₹50,000 extra on interest for first-time buyers

Conditions: Loan sanctioned between Apr 2016–Mar 2017, property value ≤ ₹50 lakh, loan ≤ ₹35 lakh

Combined Annual Tax Benefit Potential (Old Regime)

Interest (Sec 24b): ₹2 lakh

Principal (Sec 80C): ₹1.5 lakh

First-time buyer boost (Sec 80EEA): ₹1.5 lakh
➡️ Up to ₹5 lakh in deductions annually!

If the property is let out, interest deduction can go up to ₹3 lakh under Sec 24b, plus other benefits — higher savings expected under Budget 2025’s new provisions.

Important Notes

Pre-construction interest can be spread over 5 years under Sec 24(b)

Joint ownership means each co-borrower can claim individual deductions (Sec 24b, 80C, 80EEA).

These benefits apply only under the old tax regime — not available if you’ve opted for the new slab.

Why It Matters in 2025

Real estate prices and home loan rates are rising.

Maximizing tax benefits reduces effective loan costs.

Developers like Kabra Group offer timely-delivered, IGBC-registered homes — ensuring your tax claims are made easier with complete documentation.