This calculator's deduction figures — up to ₹2,00,000 on interest under Section 24(b) and up to ₹1,50,000 on principal under the combined Section 80C limit — are old-tax-regime benefits only. Under the new/default regime, Section 115BAC disallows both for a self-occupied property, so before trusting a tax-saved figure this calculator shows, confirm which regime you're actually filing under this year.
What Section 24(b) and Section 80C actually cap, and what they don't
Under the old tax regime, the Income Tax Department's own guidance for AY 2026-27 sets the Section 24(b) interest deduction for a self-occupied property, acquired or constructed on or after 1 April 1999, at an upper limit of ₹2,00,000. Separately, Section 80C gives a combined deduction limit of ₹1,50,000 that covers home loan principal repayment alongside life insurance premiums, PF and other listed items — it is a shared ceiling, not a home-loan-specific one, so principal repayment competes with every other 80C claim you make in the same year.
Both caps are per self-occupied property per financial year, and both are unaffected by which lender you owe the money to — refinancing doesn't create a second allowance. This calculator applies both caps to whatever principal and interest your specific EMI schedule generates for the repayment year you select, so its “deduction80C” and “deduction24b” outputs are already capped at ₹1,50,000 and ₹2,00,000 respectively even if your actual interest or principal paid that year is higher.
The extra ₹1,50,000 this calculator can add is a closed-window benefit — not available on a new loan today
Beyond the Section 24(b) ceiling, Section 80EEA offers an additional interest deduction — but the Income Tax Department's own AY 2026-27 guidance is explicit about who still qualifies: it provides a deduction limit of ₹1,50,000 on home loan interest, available only to individual first-time residential-property buyers, only for loans sanctioned between 1 April 2019 and 31 March 2022, only after the Section 24(b) limit is exhausted, and not combinable with a Section 80EE claim on the same loan. That sanction window closed on 31 March 2022. It still continues to apply to the remaining life of a loan that was sanctioned inside that window — it is not available on a loan you sanction today.
If you took your loan after 31 March 2022, the 80EEA field in this calculator does not apply to you, regardless of whether you're a first-time buyer or your property value qualifies on every other count — the sanction date is the gate, and it has already closed. If your loan was sanctioned inside the 1 April 2019 – 31 March 2022 window and you meet the other conditions, the additional ₹1,50,000 still runs for the rest of that loan's life.
Filing the new regime turns every figure above into zero
The Income Tax Department's own new-vs-old regime FAQ states plainly that under the new regime, "Interest on borrowed capital for Self-occupied property" is not allowed as a deduction from Income from House Property under Section 115BAC, and separately that Chapter VI-A deductions — which is where Section 80C sits — cannot be claimed at all under the new regime, apart from a short list of exceptions (Sections 80CCD(2), 80CCH, 80JJAA) that does not include home loan principal or Section 80EEA.
So a new-regime filer running this calculator on a self-occupied property should read the deduction fields as describing the old-regime alternative, not their own actual tax position — their real “taxSaved” figure from this loan is ₹0. The only place the new regime still allows interest deduction is a let-out (rented) property, where the Income Tax Department's guidance describes deduction "without limit" under the new regime, a different case entirely from the self-occupied scenario this calculator is built around and one it does not model.
The rate you enter, and the one benefit this calculator doesn't check at all
Because the calculator's tax-saved figure is built on top of your actual annual interest and principal split, it moves with whatever rate you enter — and for a floating loan, that rate is repo-linked and not fixed for the life of the loan. RBI's Monetary Policy Committee has held the repo rate unchanged at 5.25% through its directly-confirmed June 2026 meeting; a rate change shifts your interest/principal split for future years and, with it, how much of the Section 24(b) or 80C ceiling you actually reach.
This calculator also doesn't check whether you qualify for a completely separate benefit: PMAY-U 2.0's interest subsidy. For households with annual income up to ₹9 lakh (EWS up to ₹3 lakh, LIG up to ₹6 lakh, MIG up to ₹9 lakh), on loans up to ₹25 lakh for a property valued up to ₹35 lakh, the scheme runs a 4% interest subsidy on the first ₹8 lakh of the loan, up to a maximum releasable subsidy of ₹1.80 lakh (NPV ₹1.50 lakh at an 8.5% discount rate), for loans sanctioned and disbursed on or after 1 September 2024 — this is a subsidy on the loan itself, separate from and stackable with the Section 24(b)/80C tax deductions above, run through a different sanction pathway. Check your eligibility on this site's PMAY subsidy calculator before assuming the tax deduction alone is the full benefit available to you; run your exact EMI split first on this site's home loan EMI calculator if you need the interest/principal breakdown for a different year than the one this calculator defaults to.
Methodology
Section 24(b) and Section 80C caps are read from the Income Tax Department's AY 2026-27 guidance for salaried individuals. Section 80EEA's amount, conditions and closed sanction window are from the department's AY 2026-27 guidance on income from business/profession, which lists the same deduction category. The new-regime disallowance of Section 24(b) and Chapter VI-A (including 80C) is the department's own new-vs-old regime FAQ. PMAY-U 2.0 subsidy figures are from the scheme's official portal, pmaymis.gov.in. The current repo rate is RBI's MPC resolution through June 2026. Worked examples are arithmetic on the published caps, not separately sourced.
Sources
- Income Tax Department — Section 24(b) / 80C, AY 2026-27 — accessed 2026-09-21
- Income Tax Department — Section 80EEA conditions, AY 2026-27 — accessed 2026-09-21
- Income Tax Department — New vs old tax regime FAQs — accessed 2026-09-21
- PMAY-U 2.0 — Interest Subsidy Scheme — accessed 2026-09-21
- RBI — MPC Resolution (repo rate, June 2026) — accessed 2026-09-21