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Home Loan Tax Benefit Calculator
Result
Chart
Show formula & working
Self-occupied (old regime): interest deduction up to ₹2,00,000 including one-fifth of pre-construction interest · Let out: rent − municipal tax − 30% − interest; a loss is set off up to ₹2,00,000 and the rest carried forward 8 years
Principal: within the ₹1,50,000 limit of s.123 · Tax saved ≈ deduction × slab rate × 1.04
Details
Home loan tax rules (house property): rates and rules as of 30-Mar-2026 · Source: Income-tax Act, 2025 ss.21(6)–(7), 22, 109, 110, 123, Schedule XV, 202(2), as amended by the Finance Act, 2026 (s.38 of the Finance Act: s.22(2) cap covers s.22(1)(b) and (c)). Every figure based on it stays editable.
How this works
Under the old regime a home loan gives two deductions: interest (as a house-property deduction or loss) and principal (within section 123).
The new regime gives neither for a self-occupied home. For a let-out home, interest is still deducted from the rent, but a loss cannot reduce your other income.
Frequently asked questions
Is the ₹2 lakh limit per person?
Yes, per person. Co-borrowers who co-own the home can each claim their share of interest and principal within their own limits.
What about pre-construction interest?
Interest paid before the home was ready is allowed in five equal parts from the year of completion — from 2026-27 within the same ₹2 lakh limit for a self-occupied home.
Should I pick the old regime for this?
Only if your total deductions make it cheaper. Compare both with the Income Tax calculator.
Planning a home loan?
Talk to Rytvae about structuring the loan and the tax benefit across co-borrowers.