For a self-occupied home under the old tax regime, interest is deductible up to ₹2 lakh per person and principal within the ₹1.5 lakh limit shared with other investments. Everything runs in your browser; nothing you type is saved or sent.
Home loan tax benefit
A self-occupied home, under the old tax regime.
₹3 lakh
₹1 lakh
Approximate tax saved
₹93,600
Interest deduction ₹2,00,000 (cap ₹2,00,000 per person)
Principal deduction ₹1,00,000 (within the ₹1,50,000 limit shared with other investments)
At 30% plus 4% cess; surcharge is not included
Under the new tax regime neither deduction is available for a self-occupied home. Each co-owner claims on their own share of the repayment, with their own caps. Tax saved assumes the whole deduction comes off income taxed at the slab you pick. An estimate, not tax advice.
Sources: Interest: section 22 of the Income-tax Act, 2025 (earlier section 24(b) of the Income-tax Act, 1961); Principal: section 123 of the Income-tax Act, 2025 (earlier section 80C); Section 80EEA of the Income-tax Act, 1961 (loans sanctioned up to 31 March 2022); checked 1 October 2026.
Common questions
Can I claim home loan interest under the new tax regime?
Not for a self-occupied home. Under the new regime neither the interest deduction nor the principal deduction is available for it.
What if construction is not completed in five years?
If construction is not completed within five years from the end of the year in which the loan was taken, the interest deduction for a self-occupied home is capped at ₹30,000 instead of ₹2 lakh.
Can co-owners each claim the deduction?
Yes. Each co-owner who is also a borrower claims on their own share of the repayment, with their own ₹2 lakh interest cap and ₹1.5 lakh principal limit.
Is section 80EEA still available?
Not for new loans. Section 80EEA of the Income-tax Act, 1961 applied only to loans sanctioned up to 31 March 2022.