💰 Tax Savings · Income-head reliefs
Home-loan interest — up to ₹2 lakh (Section 22, old 24(b))
✍️ EaseValue Advisors · Updated 17 Jul 2026 · FY 2025-26
In short
Interest on your home loan is deductible up to ₹2 lakh a year for a self-occupied house, and the full interest for a let-out house — Section 22, Income-tax Act 2025 (old 24(b)).
The deduction
- Self-occupied: up to ₹2,00,000 of interest a year.
- Let-out: the entire interest is deductible against rent (though the net house-property loss you can set off against other income is capped at ₹2 lakh a year; the rest carries forward 8 years).
- Pre-construction interest is added in 5 instalments — see pre-construction interest.
Plus the principal
The principal repayment separately qualifies under 80C (₹1.5 lakh). First-time buyers of affordable homes may add ₹1.5 lakh under Section 131 (old 80EEA).
Regime note
Self-occupied interest is an old-regime benefit; let-out interest set-off is broadly available. Compare old vs new.
Who it helps
Every home-loan borrower — the ₹2 lakh interest + ₹1.5 lakh principal is a major reason the old regime still wins for many.
The law behind it
Section 22 (old 24(b)) Section 131 (old 80EEA)
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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