Tool · home loan tax
From your interest certificate to your tax deduction
Each year, your lender gives you an interest certificate. It shows the interest and the principal that you paid in the financial year. Type these numbers. This tool calculates the deduction and the decrease in tax for each co-owner. It is for a self-occupied home. Your numbers stay in your browser.
Co-owner 1
Co-owner 2
| Result | Co-owner 1 | Co-owner 2 | Total |
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How the tool calculates the deduction
- Interest (s.22 of the 2025 Act, s.24(b) of the 1961 Act): each owner can deduct a maximum of ₹2,00,000 each year for a self-occupied home. If the construction was not complete in five years after the end of the financial year of the loan, the limit is ₹30,000.
- Interest before the construction was complete: you can claim it in five equal parts. The first part is in the year when the construction was complete, and the other parts are in the next four years. Each part is in the same limit as the interest of the year.
- Principal, stamp duty and registration (s.123 of the 2025 Act, s.80C of the 1961 Act): each owner can deduct a maximum of ₹1,50,000 each year. EPF, PPF, ELSS, life insurance and tuition fees use the same limit.
- New regime (s.202): it gives no deduction for a self-occupied home.
- Decrease in tax: the deduction × the highest slab of the person × 1.04 (the 4% cess). This is an estimate. A rebate or a surcharge can change it.
Rules for a joint loan
- Each person must be an owner of the property and a borrower on the loan.
- Each person claims the part of the interest and principal that the person pays. Use the part of the EMI that each person pays with the money of that person.
- The limit applies to each person. Thus, two owners can deduct a maximum of ₹4,00,000 of interest together.
- For a self-occupied home, interest above the limit gives no deduction. You cannot move it to the next year.
Limits of this tool
- It is for a self-occupied home. It does not calculate a home that you rent to a tenant.
- It does not calculate the closed deductions of s.80EE and s.80EEA (s.130 and s.131 of the 2025 Act). Refer to the s.80EEA guide.
- Speak to a chartered accountant before you file your return.
Values from Sources & Standards. Refer also to the Income-tax Act, 2025 section table.