Moment guide · FY 2026-27

I'm buying a home with a loan

What tax benefits can I claim on home loan EMI and stamp duty?

Sec 24(b)Sec 80CSec 71(3A)Verified 2026-08-11

Home loan tax benefits are OLD REGIME ONLY. In the new regime, zero deductions for home loan interest or principal. In the old regime: ₹2L/year interest deduction for self-occupied property u/s 24(b), principal repayment within ₹1.5L under 80C, and stamp duty in 80C in the year of payment. For let-out property, no interest cap but losses are offset against salary up to ₹2L.

Your legitimate options

Every route the statute actually gives you — with its condition, cap and deadline.

Route	Condition	Cap / deadline
Interest on self-occupied property — old regime	Property is self-occupied; loan from bank/NBFC/employer	₹2L/year deduction u/s 24(b); losses set off against other income up to ₹2L u/s 71(3A)
Interest on let-out property — old regime	Property rented out	No cap on interest deduction; annual value reduced by interest; net loss set off up to ₹2L (s.71(3A))
Principal repayment — old regime	Any property; repayment to bank/NBFC	₹1.5L bucket under 80C; with LIC, PPF, ELSS, etc.
Stamp duty & registration — old regime	Year of payment	Within ₹1.5L 80C bucket in the year stamp duty is paid
Pre-EMI interest — old regime	Construction period before possession	Pre-possession interest divided into 5 equal parts; deductible from year of possession

The #1 trap

In the new tax regime, NONE of these deductions (24(b) interest, 80C principal, stamp duty) are available — the new regime gives only the ₹75k standard deduction for salaried employees.

The decision path

Follow it top to bottom — the first condition that matches is your answer.

IF on new tax regime → zero home loan deductions; only ₹75k standard deduction for salaried
IF on old regime AND property is self-occupied → claim ₹2L interest u/s 24(b) + principal in 80C
IF on old regime AND property is let-out → full interest allowed; net loss set off up to ₹2L vs salary; carry forward 8 years
IF construction ongoing → pre-EMI interest is accumulated; deductible in 5 equal installments from year of possession
IF stamp duty paid this year → include in 80C (subject to ₹1.5L cap) in year of payment

Worked example

Vikram, 35, software engineer buying first home in Pune

Vikram buys a flat for ₹85 lakh with a ₹70 lakh home loan at 8.75% p.a. on possession in April 2026. Monthly EMI = ₹62,000. In FY 2026-27: total EMI paid = ₹7.44L. Interest component = ₹6.1L. Principal = ₹1.34L. Stamp duty paid at registration = ₹3L. Old regime tax benefits: - 24(b) interest: capped at ₹2L (self-occupied); ₹4.1L interest is disallowed - 80C: ₹1.34L principal + ₹1.5L of the ₹3L stamp duty (he already has ₹15k in PF, fills 80C to ₹1.5L cap) Wait — stamp duty was ₹3L but 80C cap is ₹1.5L and he has ₹1.34L principal already. Total 80C claimed = ₹1.5L (capped) - Net saving: ₹2L (interest) + ₹1.5L (80C) = ₹3.5L deductions. At 30% slab = ₹1.05L saved. New regime: Vikram gets ZERO home loan deduction — only ₹75k standard deduction. Tax saving from new regime vs old regime differences = zero on home loan front. Conclusion: old regime is better for Vikram by ₹1.05L/year in tax savings (₹3.5L deductions × 30%), assuming he has minimal other investments to fill the rest of 80C. A quick call with us dials in the final figure.

Claims influencers make about this moment

Partly true“Both husband and wife can each claim ₹2 lakh interest deduction on a joint home loan — total ₹4 lakh!”

Questions people actually ask

Is Section 80EEA still available for first-time home buyers?

No. Section 80EEA has expired — it applied to loans sanctioned up to 31 March 2022 only. Do not claim it for loans sanctioned after that date.

Can I claim home loan interest if the property is under construction?

Not during construction. Interest paid during the pre-possession period is accumulated and then claimed in 5 equal installments starting from the year you take possession.

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Sections: 24(b), 80C, 71(3A) · Last verified 2026-08-11 · Reviewed by Harun Raaj & Associates, Chartered Accountants. Every figure cites the Income-tax Act, 1961 (with ITA 2025 mapping via our section index).