💰 Tax Savings · Deductions (80C–80U)
Extra ₹1.5 lakh home-loan interest — Section 131 (old 80EEA)
✍️ EaseValue Advisors · Updated 18 Jul 2026 · FY 2025-26
In short
First-time buyers of an affordable home get an extra ₹1.5 lakh home-loan interest deduction — on top of the ₹2 lakh under house-property interest — Section 131, Income-tax Act 2025 (old 80EEA).
The deduction
An additional ₹1,50,000 of interest, taking the total to up to ₹3.5 lakh in the year.
Conditions
- Loan sanctioned between 1 Apr 2019 and 31 Mar 2022 (the deduction then continues over the loan's life).
- Stamp-duty value of the house ≤ ₹45 lakh.
- You owned no other house on the sanction date.
- Old regime only.
Who it helps
First-time buyers of affordable homes with an eligible-period loan — pairs with the ₹2 lakh interest and ₹1.5 lakh principal.
How to claim it
- Confirm the loan sanction date falls in 1 Apr 2019 – 31 Mar 2022 and the stamp-duty value is ≤ ₹45 lakh.
- Claim the ₹2 lakh house-property interest first (Section 22), then the extra ₹1.5 lakh here — your bank's interest certificate has the split.
- The benefit continues each year until the loan is repaid; keep claiming it while eligible.
The law behind it
Section 131 (old 80EEA) Section 22 (old 24(b))
General information for FY 2025-26 (AY 2026-27), not advice on your specific case. Limits, rates and conditions
change with each Finance Act and depend on your facts — confirm before acting. © EaseValue Advisors LLP.
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