What is the best way to save tax on a ₹30 lakh home loan interest?

Asked 25 Jan 2026·4215 views

I took a home loan of ₹30 lakhs at 8.75% for 20 years. I pay about ₹2.5 lakhs as interest annually. I earn ₹20 lakhs per year as a doctor in a private hospital. How can I maximize my tax savings on the home loan interest? I have heard about Section 24(b) and Section 80EEA. Are there any other provisions I can use? What is the difference between these sections?

Asked by Vikram Mehta

1 Answer

Under Section 24(b), you can claim deduction of up to ₹2 lakhs per year on home loan interest. The excess interest (your ₹2.5 lakhs - ₹2 lakhs = ₹50,000) cannot be claimed unless you have rental income from the property. Section 80EEA gives an additional ₹1.5 lakh deduction (over and above 80C) if the loan is up to ₹45 lakhs and the property value is up to ₹65 lakhs. You can claim both — ₹2 lakh under 24(b) + ₹1.5 lakh under 80EEA = ₹3.5 lakh total deduction.

Answered by Rajesh Kumar · 26 Jan 2026