Section 22: House-Property Interest
Current Section 22 carries the house-property interest computation formerly associated with Section 24(b). For a qualifying self-occupied property in the optional old regime, the represented ceiling can be ₹2,00,000 when acquisition/construction and completion conditions are met, or a lower ceiling in specified cases. A let-out property requires a full house-property computation: annual value, municipal taxes, standard deduction and interest are relevant. Interest is not simply a universal ₹2 lakh deduction, and the current-year loss that can be set off against other income is separately restricted, with eligible balance potentially carried forward. Default-regime restrictions also differ between self-occupied and let-out facts.
Home Loan Tax Benefit Calculator: What It Includes
Use the linked calculator to model represented interest, principal, property use and regime assumptions. It is an estimate, not a lender certificate: the actual claim depends on ownership, possession or completion, the loan statement, the person who paid the EMI and the current return utility. Do not add the entire EMI as one deduction because principal and interest follow different rules.
Section 123 / Schedule XV: Eligible Principal and Purchase Costs
Eligible principal repayment and specified stamp-duty/registration payments fall within the combined ₹1,50,000 Section 123/Schedule XV ceiling in the optional old regime. Payment, possession and holding-period conditions apply; the full EMI is never a principal deduction because its interest component is handled separately.
GST on Home Loan: Interest, Fees and Property Construction Are Different
GST is not an income-tax deduction on the principal or interest used in this guide. CBIC guidance distinguishes interest or discount on a loan from separate processing, documentation or service charges, which may be taxable; GST on an under-construction property is a separate construction-supply question. Check the lender invoice and property agreement instead of applying one “GST on home loan” rate to every EMI.
Legacy First-Time-Buyer Provision
The former Section 80EEA applied only to qualifying loans sanctioned from 1 April 2019 through 31 March 2022 and imposed stamp-value, ownership and other conditions. It is not available for a new Tax Year 2026-27 sanction merely because the buyer is purchasing a first home. A previously qualifying loan should be checked against the transitional/current Act provision and remaining interest rather than added automatically.
Joint Loan: Allocate by Ownership and Payment
A co-borrower does not receive a deduction merely because their name appears on the loan. Each claimant must establish co-ownership, liability, actual payment, property use and regime eligibility. Interest and principal are allocated to the supported share and each person's own cap. “₹7 lakh family benefit” is only a theoretical sum of maximum ceilings and is not a guaranteed deduction.
Pre-Construction Interest (Pre-EMI)
Eligible pre-construction interest is spread over five equal instalments beginning with the tax year in which construction/acquisition is completed. The instalment is not automatically added above the self-occupied ceiling: current-year interest and the pre-construction instalment together remain subject to the applicable property and regime limit.
Official References
Source date: 2026-08-08. Confirm later notifications, rules and portal forms before filing or transacting.