Short answer
In the old tax regime, a home loan for a self-occupied house gives two deductions each year: interest up to ₹2 lakh under Section 22(2) of the Income-tax Act, 2025 (earlier Section 24(b)), and principal up to ₹1.5 lakh under Section 123 (earlier Section 80C). In the new regime, neither is allowed for a self-occupied house.
Even so, the new regime often still costs less. On ₹20 lakh salary with a ₹50 lakh loan at 8.5%, the old regime tax is ₹2,96,400 with the loan and the new regime tax is ₹1,92,400. Check your own numbers with the calculator before you choose.
How to use this home loan calculator
- Pick the loan purposeBuying a flat, building on your plot, an under-construction home, renovation or a balance transfer. Each has different tax limits, and the calculator applies the right one.
- Enter the loan amount, rate and tenureType them or drag the sliders. Set the month of your first EMI under the schedule so each tax year gets the right interest and principal.
- Add your tax detailsChoose self-occupied or let out, and enter your income and the deductions you already claim. For a joint loan or pre-EMI interest, open that panel.
- Compare the regimesPick the tax year. You see the interest and principal you can claim, your old regime tax with the loan, your new regime tax, and which one is lower.
- Check eligibilityUse the second tab to see how much you can borrow on your income and the property value, and the down payment you need.
Home loan tax benefits for 2026-27
The Income-tax Act, 2025 applies from 1 April 2026. The limits are the same as before; the section numbers changed.
| Benefit | Section (earlier) | Limit | Old regime | New regime |
|---|---|---|---|---|
| Interest, self-occupied home | 22(1)(b) and 22(2) (24(b)) | ₹2 lakh a year, if bought or built within 5 years of the loan | Yes | No |
| Interest, let-out home | 22(1)(b) (24(b)) | No cap against rent. Loss set off against other income up to ₹2 lakh | Yes | Against rent only, no set-off |
| Interest before possession | 22(1)(c) (24(b)) | One-fifth a year for 5 years, inside the ₹2 lakh cap for a self-occupied home | Yes | Let-out only |
| Interest on a repair or renovation loan | 22(2)(b) (24(b)) | ₹30,000 a year | Yes | No |
| Principal repayment | 123 (80C) | ₹1.5 lakh a year, shared with PF, PPF, LIC and ELSS | Yes | No |
| Stamp duty and registration | 123 (80C) | Inside the same ₹1.5 lakh, in the year you pay | Yes | No |
| Standard deduction on rent | 22(1)(a) (24(a)) | 30% of rent after municipal tax | Yes | Yes |
Two older benefits only apply to loans sanctioned in their window: Section 130 (earlier 80EE) for loans sanctioned in 2016-17, and Section 131 (earlier 80EEA) for affordable homes up to ₹45 lakh with loans sanctioned between 1 April 2019 and 31 March 2022. New loans in 2026 don't qualify.
Old vs new regime with a home loan
The new regime has lower slab rates and no tax up to ₹12 lakh of taxable income, but drops the home loan deductions for a self-occupied house. The old regime keeps them, at higher rates. Which is cheaper depends on how much you deduct in total.
In FY 2027-28 you pay ₹4,17,608 interest and ₹1,03,086 principal. You can claim ₹2 lakh of interest. With ₹90,000 already in PF, your 80C reaches the ₹1.5 lakh cap.
Old regime tax: ₹3,77,520 without the loan and ₹2,96,400 with it, a saving of ₹81,120. New regime tax: ₹1,92,400.
The new regime is still ₹1,04,000 cheaper. The old regime would need about ₹3.34 lakh more in deductions, such as a large HRA exemption, to catch up.
The old regime tends to win when you have a big HRA exemption and a home loan together, for example if you live on rent in one city and pay a loan on a flat in another, or when your total deductions cross roughly ₹7.5 lakh to ₹8 lakh, depending on income. Salaried employees can switch regimes every year when filing the return. People with business income can switch back to the old regime only once.
Let-out home: how the deduction works
For a let-out home, you are taxed on rent after municipal tax and a flat 30% deduction, and you deduct the full interest with no cap. If interest is more than the rent, the result is a loss.
Rent ₹2,40,000 less ₹10,000 municipal tax leaves ₹2,30,000. After the 30% deduction, ₹1,61,000 is taxable. Interest of ₹4,17,608 turns this into a loss of ₹2,56,608.
Old regime: ₹2 lakh of the loss is set off against your salary this year, and the rest is carried forward for up to 8 years against future rental income. New regime: the interest wipes out the rent income, but the extra loss cannot be set off or carried forward.
The loan saves ₹1,31,352 of old-regime tax and ₹37,960 of new-regime tax in FY 2027-28.
Joint home loan: double the deduction
If you and your spouse are both co-owners and co-borrowers, each of you claims interest up to ₹2 lakh and principal up to ₹1.5 lakh on your own share. Together, that is up to ₹4 lakh of interest and ₹3 lakh of principal a year on one home.
- Each person must be a co-owner on the sale deed and a co-borrower on the loan.
- Claim in the same ratio as your ownership share, and make sure each person's share of EMIs comes from their own account.
- Ask the lender for an interest certificate that shows each borrower's share.
Set "Your share of the loan" in the calculator to see your part of the benefit.
Under-construction home and pre-EMI interest
No deduction is allowed while the home is being built. Interest you pay before possession is added up and claimed in five equal parts, starting in the year construction is completed. For a self-occupied home, each part counts inside the ₹2 lakh yearly cap.
The ₹2 lakh cap applies only if construction is completed within five years from the end of the tax year in which you took the loan. If the builder is late beyond that, the cap drops to ₹30,000 a year.
Home loan eligibility and down payment
Banks limit your loan in two ways: your EMIs should stay within 40% to 60% of net monthly income, and the loan cannot exceed a set share of the property value.
| Property value | Maximum loan (LTV) | Down payment, at least |
|---|---|---|
| Up to ₹30 lakh | 90% of value | 10% |
| ₹30 lakh to ₹75 lakh | 80% of value | 20% |
| Above ₹75 lakh | 75% of value | 25% |
Stamp duty and registration are usually not funded by the loan, so budget for them on top of the down payment. In Maharashtra, stamp duty is generally 5% to 7% of the agreement value, depending on the city's metro cess and local body tax, plus registration charges. Women buyers get a 1% concession.
Home loan EMI for common amounts
EMIs at 8.5% a year. Use the calculator for your exact rate.
| Loan amount | 15 years | 20 years | 25 years | 30 years |
|---|---|---|---|---|
| ₹25 lakh | ₹24,618 | ₹21,696 | ₹20,131 | ₹19,223 |
| ₹40 lakh | ₹39,390 | ₹34,713 | ₹32,209 | ₹30,757 |
| ₹50 lakh | ₹49,237 | ₹43,391 | ₹40,261 | ₹38,446 |
| ₹75 lakh | ₹73,855 | ₹65,087 | ₹60,392 | ₹57,669 |
| ₹1 crore | ₹98,474 | ₹86,782 | ₹80,523 | ₹76,891 |
| ₹1.5 crore | ₹1,47,711 | ₹1,30,173 | ₹1,20,784 | ₹1,15,337 |
| ₹2 crore | ₹1,96,948 | ₹1,73,565 | ₹1,61,045 | ₹1,53,783 |
Documents to claim the home loan deduction
- The lender's interest certificate for the year, showing interest and principal separately
- The sale deed or allotment letter, and the possession or completion certificate for an under-construction home
- Stamp duty and registration receipts, for the year you pay them
- Form 12BB to your employer, so it reflects in your TDS, or claim it directly in your return
Frequently asked questions
How much tax can I save on a home loan in 2026-27?
In the old regime, up to ₹2 lakh of interest and ₹1.5 lakh of principal a year for a self-occupied home, which saves up to about ₹1.09 lakh at the 30% slab plus cess. In the new regime, there is no deduction for a self-occupied home.
What is the new section for home loan interest under the Income-tax Act, 2025?
Interest on a home loan is now deducted under Section 22(1)(b), with the ₹2 lakh cap for a self-occupied home in Section 22(2). This replaces Section 24(b) of the 1961 Act from 1 April 2026. Principal repayment moved from Section 80C to Section 123.
Can I claim home loan interest in the new tax regime?
Not for a self-occupied home. For a let-out home, interest can be deducted from the rent in the new regime, but if it creates a loss, that loss cannot be set off against your salary or carried forward.
Is the old or new regime better with a home loan?
It depends on your total deductions. On ₹20 lakh salary with a ₹50 lakh loan, the new regime is about ₹1.04 lakh cheaper. The old regime usually wins only when you also have a large HRA exemption or other deductions, roughly ₹7.5 lakh to ₹8 lakh or more in total, depending on your income.
Can both husband and wife claim home loan tax benefits?
Yes, if both are co-owners and co-borrowers. Each claims interest up to ₹2 lakh and principal up to ₹1.5 lakh on their own share, so a couple can claim up to ₹4 lakh of interest and ₹3 lakh of principal a year.
How is pre-EMI interest on an under-construction flat treated?
Interest paid before possession is claimed in five equal instalments, starting in the year construction is completed. For a self-occupied home, each instalment counts within the ₹2 lakh yearly cap.
What if the builder delays possession beyond 5 years?
The ₹2 lakh cap applies only if construction is completed within five years from the end of the tax year in which the loan was taken. Otherwise, the interest deduction for a self-occupied home is limited to ₹30,000 a year.
Is stamp duty deductible?
Yes, in the old regime. Stamp duty and registration charges count under Section 123 (earlier 80C) in the year you pay them, within the same ₹1.5 lakh limit as principal repayment and other investments.
How much home loan can I get on my salary?
Banks keep total EMIs within about 50% of net monthly income. On ₹1 lakh a month with no other loans, that allows an EMI of ₹50,000, or about ₹57.6 lakh at 8.5% for 20 years. The loan is also capped at 75% to 90% of the property value.
Is interest on a renovation loan deductible?
Yes, up to ₹30,000 a year for a self-occupied home in the old regime. The principal of a repair or renovation loan does not qualify under Section 123.
What is the EMI on a ₹50 lakh home loan?
At 8.5% a year, it is ₹49,237 for 15 years, ₹43,391 for 20 years and ₹38,446 for 30 years.
Can I download my home loan schedule and tax workings?
Yes. Below the schedule, use Download PDF or Download Excel, grouped by financial year. Copy share link opens the calculator with your loan and tax details filled in, which you can send to your CA.