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The EMI (equated monthly installment) that you pay to repay your home loan consists of two components - one is the principal and the other is the interest. The principal component of the EMI qualifies for deduction under section 80C.
Even the interest component can save you significant income tax - but that would be under Section 24 of the Income Tax Act. Currently, anybody with a housing loan gets a deduction up to Rs 150,000, paid as interest for the loan, from his total income, for a self occupied property.
For more information on how a home loan can help you save tax – please see our Section on Income from House Property
The EMI (equated monthly installment) that you pay to repay your home loan consists of two components - one is the principal and the other is the interest. The principal component of the EMI qualifies for deduction under section 80C.
Even the interest component can save you significant income tax - but that would be under Section 24 of the Income Tax Act. Currently, anybody with a housing loan gets a deduction up to Rs 150,000, paid as interest for the loan, from his total income, for a self occupied property.
For more information on how a home loan can help you save tax – please see our Section on Income from House Property
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