Tax Benefit On Home Loan FY 2017-18/Section 24,80EE And 80C

Tax Benefit On Home Loan can become a great source of reducing your tax,if you have good knowledge of its benefits.

In order to explain  Home Loan Tax Benefit we would like to explain Section 80C,Section 24 and Section 80EE.

We divide  Home Loan into 2 categories:

  • Repayment of the principal amount.
  • Repayment of the interest amount on Home loan.

Section 80C relates with Repayment of the principal amount.

And Section 24 & Section 80EE deal with repayment of the interest amount on Home loan.

Table Of Contents:

  •  Tax Benefit On Home Loan Section 80C (Principal Amount)
  • Section 24 Tax Benefit On Home Loan (Interest Amount)
  •  Additional Tax Benefit On Home Loan Section 80EE of Rs 50,000 (Interest Amount)

Home Loan Tax Benefit Section 80C (Principal Amount)

If an individual or HUF has paid an amount in terms of principal Amount towards home loan,then he can take benefit of deduction up to rs 150,000.

Further this above amount of Rs 150,000 is not deductible separately rather it is total of maximum of PPF,LIC,Tuition Fee etc.

Deduction on Stamp Duty & Registration Fee

The amount paid as stamp Duty and registration fee is deductible under section 80C even though the tax payer has not taken loan.

You can only take tax benefits  on Stamp Duty & Registration Fee in the years you have these expenses.

Conditions to claim Deductions Under SECTION 80C:

  • Construction of house should be complete.
  • Under construction houses are not liable for tax deduction.
  • Deduction is allowed for self-occupied and let-out properties.
  • Tax benefit is also for more than 1 house property.
  • Up to 5 years tax benefit we can take.
  • You can not sell the property before 5 years completion.

Section 24 Tax Benefit On Home Loan (Interest Amount)

From financial year 2017-18 if the house is self-occupied then one can claim Rs 2,00,000 as deduction on the interest amount paid towards Home loan.

In case the house is let-out or not self-occupied then rent received will be income and interest paid will be considered as deduction.

Further if rent received is more than interest paid.then that amount is eligible for tax deduction under section 24.up to Rs 200,000 are allowed as tax deduction.

Tax Benefit On Home Loan

 Additional Tax Benefit of Rs 50,000 On Home Loan Section 80EE  (Interest Amount)

This tax benefit of rs 50,000 from financial year 2017-18 on home loan is worth getting if it follows these conditions:

  • Property value should be 50 lac or below.
  • loan amount must be 35 lac or below.
  • This tax benefit is additional to those of tax benefits under section 80c and section 24.


Thus we see that one can tax tax benefit under sections 80EE,80C and Section 24 By following the conditions as explained above.

Hence you can take huge tax benefits by planning your annual tax deductions. under sections 80EE,80C and Section 24 .

For better explanation watch this video here

Kuldeep Singh

is a professional blogger,teacher and income tax expert

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