Tax Benefits on Loans (India)

Certain loans offer tax deductions under Indian tax law when used for specified purposes. Below are common examples—always consult a tax advisor for personal advice.

Home Loan

• Principal repayment deduction under Section 80C (limit ₹1.5 lakh, combined with other eligible investments).
• Interest deduction under Section 24(b): self-occupied property up to ₹2 lakh; let-out property has different rules.
• Additional deductions for first-time homebuyers under certain conditions.

Education Loan

Interest on an education loan is fully deductible under Section 80E for a limited number of years; there is no upper limit on the deduction.

Personal & Business Loans

Personal loans generally do not have direct tax benefits unless the funds are used for business or investment that generates taxable income where interest becomes an allowable expense.

Estimate loan costs before relying on tax benefits: Use the EMI Calculator.