Tax Benefits on Home Loan 2020
                     Tax Benefits on Home Loan
Know how you can save up to Rs.3.5 Lakh on 
your home loan
Income Tax Benefit on 
Home Loan
The Union Budget proposed to increase the 
income tax benefits by Rs.1.5 Lakh on interest 
payments of housing loans. Therefore, 
borrowers can now avail benefits of up to Rs. 
3.5 Lakh.
Elaborating the Home Loan Tax 
Sections in Details:
On availing a home loan, you need to make 
monthly repayments as EMIs, which include two 
primary components – principal amount and 
interest payable. The IT Act enables borrowers to 
enjoy home loan tax benefit on both these 
components individually.

Section 80C
• Claim a maximum deduction of tax on housing 
loan up to Rs.1.5 Lakh from your taxable income 
on the principal repayment.
• This may also include stamp duty and 
registration charges as well. These can be 
claimed only once.
Section 24
• Enjoy maximum deductions of up to Rs. 2 Lakh 
on the interest amount payable.
• These deductions apply only on the property 
whose construction is finished within 5 years. If 
it doesn’t finish within this time frame, you can 
claim only up to Rs. 30,000.
Section 80EE
• First-time home buyers can claim an additional 
Rs. 50,000 on the payable interest every 
financial year.
• The Home Loan amount must not be more than 
Rs. 35 Lakh.
• The property’s value must be within Rs. 50 Lakh.
Thank You
For more information, visit Bajaj 
Finserv website at: 
https
://www.bajajfinserv.in/tax-benefits-on
-home-loan