IDFC FIRST Bank
Don’t miss out on the tax benefits that the loan can offer. Check out what they are.
The principal repaid qualifies as a deduction under Section 80C. The maximum deduction limit is ₹1.5 lakhs.
Interest paid on the home loan also qualifies as an exemption from your taxable income. However, the exemption limit depends on the home’s usage.
If you are using the property for self-accommodation, the aggregate exempted interest that you can claim is up to ₹2 lakhs.
If your home is vacant, it will be deemed as self-occupied. The exemption limit would be ₹2 lakhs on the home loan interest.
If you rent out your home, the interest paid on the home loan can be claimed as an exemption without any limit.