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What are the tax benefits associated with home loan EMIs in India?

Author : arpan shah | Published On : 05 Jul 2025

If you’ve taken a home loan, the Indian government allows you to claim tax benefits on your EMIs to reduce your total tax outgo. A typical EMI includes two parts – interest and principal, and both offer tax deductions under different sections of the Income Tax Act.

✅ Tax Benefits on Home Loan EMI:

  1. Interest Payment – Section 24(b)
    You can claim a deduction of up to ₹2,00,000 per year on the home loan interest component of your EMI under Section 24(b).
    💡 Tip: Use a home loan interest rate EMI calculator to estimate your monthly interest outgo.
     

  2. Principal Payment – Section 80C
    You can claim a deduction of up to ₹1,50,000 per year on the principal repayment part of your EMI under Section 80C.
    💡 This is also applicable if you use a home loan interest rate EMI calculator to track your repayment split.
     

First-Time Home Buyers – Section 80EEA
If this is your first home loan, you may get an additional deduction of ₹1.5 lakh on interest, subject to certain conditions.