A beneficial byproduct of the home loan process, tax benefits have much to offer. You can avail tax benefits on both, the interest paid as well as the principal repaid on a home loan, which can be redirected towards your EMIs and savings.

Here are two laws from Indian Income Tax Act that clearly talk about the tax benefits on availing a home loan:

Under Section 24(d) of Income Tax, the maximum deduction of interest payable on the home loan is up to ₹2,00,000.

Under Section 80(c) of Income Tax, Principal amount for the loan repayment alongside other savings & investments is eligible for maximum tax deduction limit of up to ₹1,50,000.

If you are planning to take a home loan, you may calculate your tax benefits based on your loan amount by taking into consideration the above laws.