Two parts of a home loan EMI
Your EMI has principal and interest. They are claimed under different sections:
- Interest → Section 24(b)
- Principal → Section 80C (within the ₹1.5 lakh bundle)
Section 24(b) limits
| Property type | Interest cap |
|---|---|
| Self-occupied | ₹2,00,000 per year |
| Let-out | Actual interest (loss set-off capped at ₹2L against other heads) |
This sits in the house property head. For a self-occupied home it is an old-regime benefit.
What you should do
- Get the interest certificate from your lender (splits principal vs interest)
- Put interest under house property Section 24(b); principal under 80C
- If the house is let out, also report rent — see let-out vs self-occupied basics
- Compare old vs new regime — heavy interest often favours old regime
- Draft it in LastMinute ITR and verify before the portal
Common mistake
Claiming the full EMI as interest. Only the interest component qualifies under 24(b); principal goes to 80C and shares the ₹1.5L cap with other investments.
Related guides
Check your housing deductions with LastMinute — file on incometax.gov.in.