Home Loan Tax Benefit Calculator

Estimate your potential tax savings on home-loan principal and interest under the Old and New Tax Regimes.

Tax & Loan Inputs

1. Tax Regime & Assessment Year

calendar_today Assessment Year

gavel Tax Regime Selection

percent Applicable Marginal Tax Rate

2. Property & Loan Details

home Property Usage Type

payments Annual Taxable Income

₹

real_estate_agent Property Market Value

₹

account_balance Home Loan Amount

₹

3. Annual Repayments & Section 80C

price_change Annual Principal Repaid

₹

savings Annual Interest Paid

₹

receipt_long Other 80C Investments

₹

Estimated Annual Tax Saving

OLD REGIME HIGHER

₹ 1,05,000 / yr

Old Regime: ₹ 1,05,000 vs New Regime: ₹ 0. Higher Benefit: Old Regime (+₹ 1,05,000).

80C CAPACITY WARNING:

Your existing 80C investments already use the ₹1.5 lakh limit.

Old Regime Tax Saving

₹ 1,05,000

Deduction: ₹ 3.50L

New Regime Tax Saving

₹ 0

Deduction: ₹ 0

Section 80C Deduction

₹ 1,50,000

100% Utilized

Sec 24(b) Interest Deduction

₹ 2,00,000

Capped at ₹ 2.00L

Effective Interest Cost

₹ 1,45,000

₹ 2.50L - ₹ 1.05L

Tax Benefit % of Interest

42.0%

Cost Reduction

Old vs New Regime Tax Benefit Comparison

Deduction Component

Old Regime New Regime

Section 80C Principal

₹ 1,00,000 ₹ 0

Section 24(b) Interest

₹ 2,00,000 ₹ 0

Total Eligible Deduction
                            ₹ 3,50,000
                            ₹ 0
                        

Estimated Tax Saving (30%)
                            ₹ 1,05,000
                            ₹ 0
                        

Home Loan Tax Insights

ℹ️ Regime Recommendation: Based on the home-loan deductions entered, the Old Regime provides ₹ 1,05,000 higher estimated tax savings.
ℹ️ Section 80C Benefit: Your home-loan principal repayment of ₹ 1,00,000 plus other 80C investments of ₹ 50,000 fully utilizes the ₹ 1.5 Lakh limit.

tips_and_updates

Important Tax Disclaimer: This calculator provides an indicative estimate based on the inputs and tax rules configured for AY 2026-27. Actual tax benefits depend on eligibility, property usage, loan purpose, ownership, possession/construction conditions, house property income/loss rules and other provisions. Verify the final computation with the Income Tax Department or a qualified tax professional.

This calculator is an indicative tax-planning tool and is not a substitute for tax advice or tax filing. Tax benefits depend on the applicable assessment year, tax regime, property type, ownership, loan purpose, possession/construction conditions, house-property income/loss rules and other provisions. Verify the final computation with the Income Tax Department or a qualified tax professional.

How Home Loan Tax Benefits Work

Tax benefits on a home loan in India consist of two primary deductions under the Income Tax Act: Section 80C for principal repayment and Section 24(b) for interest paid.

Section 80C

Principal Repayment (Old Regime)

Claim up to ₹1.5 Lakh per financial year for housing loan principal repaid. Note that ₹1.5 Lakh is a combined limit shared with EPF, PPF, and ELSS.

Section 24(b)

Interest Deduction (Old Regime)

Deduct up to ₹2.0 Lakh per year for self-occupied home loan interest. For let-out properties, actual qualifying interest may be claimed subject to set-off rules.

AY 2026–27

New Tax Regime Rules

Under the New Tax Regime, Section 80C deductions and Section 24(b) interest for self-occupied properties are not available. Let-out property interest is allowed subject to loss restrictions.

Tax Rule

Tax Deduction vs Tax Saving

A ₹2.0 Lakh deduction reduces your taxable income. At a 30% marginal tax rate, your actual tax saving is ₹60,000 (not a ₹2.0 Lakh cash refund).

Frequently Asked Questions

Can I claim home loan interest deduction under the New Tax Regime?

For AY 2026-27, interest on self-occupied house property is NOT deductible under Section 24(b) in the New Tax Regime. However, interest on eligible let-out property may be claimed.

What is the maximum tax deduction allowed under Section 80C for home loan principal?

Section 80C provides a combined maximum deduction of ₹1.5 Lakh per financial year for housing loan principal repayment, EPF, PPF, ELSS, and life insurance premiums under the Old Tax Regime.

Is a tax deduction equal to tax saved?

No. A deduction reduces your taxable income. Your actual tax saving equals the deduction multiplied by your marginal tax rate (e.g., ₹2,00,000 deduction at 30% slab = ₹60,000 tax saving).