What a home loan saves in tax across both sections, and how much of it is wasted. Principal competes with provident fund inside one 80C limit, so the second half of the benefit often does not exist.
Also called: home loan tax saving, housing loan deduction.
₹86,736 saved this year: ₹2,00,000 of interest under 24(b) and ₹78,000 of principal under 80C. The effective interest rate after tax relief is what makes a home loan cheap.
Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.
Interest is deductible under section 24(b) up to a cap on a self-occupied property, and principal repayment counts towards the section 80C limit. The catch is that 80C is shared: provident fund contributions usually fill most of it before any principal is counted, so the principal benefit is frequently zero even though the loan statement shows it. Both wasted figures are reported for that reason.
the saving is the difference in tax with and without both deductionsEach of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.
Tax saved by the home loan₹86,736
Only 78,000 of 80C headroom remains after the provident fund
Open this exampleTax saved by the home loan₹62,400
boundary: the case people are surprised by
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