In India, you can save tax on your home loan by deducting the principal repayment and interest paid. Section 80C of the Income Tax Act allows you to deduct the principal repayment amount up to Rs. 1.5 lakhs. Section 24 allows you to claim a deduction for interest paid on a self-occupied property up to Rs. 2 lakhs. Section 24 allows you to deduct the full amount of interest paid on rented property as a deduction from rental income. Furthermore, if you have a joint home loan with a co-borrower, you can both claim separate deductions for principal and interest paid.
