Question 1

What is the maximum tax benefit on home loan in India?

Accepted Answer

Under the Old Tax Regime: Section 24(b) allows up to ₹2L/year deduction on interest paid for self-occupied property. Section 80C allows up to ₹1.5L/year deduction on principal repaid (combined with other 80C investments). Total maximum: ₹3.5L/year. At 30% tax slab, that's up to ₹1.05L in annual tax saved. Neither deduction applies under the New Tax Regime.

Question 2

Is home loan interest deductible under the New Tax Regime?

Accepted Answer

No. Section 24(b) and Section 80C deductions for home loans are only available under the Old Tax Regime. The New Tax Regime (default from FY 2024-25) offers lower slab rates but no home loan deductions. If your home loan interest is significant, calculate your tax under both regimes before choosing.

Question 3

How much tax can I save on an education loan?

Accepted Answer

Under Section 80E, the entire interest paid on an education loan is deductible — with no upper limit — for up to 8 consecutive years from repayment start. This is one of the few deductions available under both Old and New Tax Regimes. At 20% slab, ₹1.5L in interest saves ₹30,000 in tax.

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