What the taxman gives back

Summary: Home buyers and property owners often overlook how many tax benefits are built into housing, from home loan interest and rental income to capital gains exemptions. Here, we explain how to claim these deductions effectively, while highlighting the conditions, limits and old-regime rules that determine who actually benefits.

Summary: Home buyers and property owners often overlook how many tax benefits are built into housing, from home loan interest and rental income to capital gains exemptions. Here, we explain how to claim these deductions effectively, while highlighting the conditions, limits and old-regime rules that determine who actually benefits. Buying a home is one of the largest financial commitments most people will ever make. What many buyers discover only later is that the government has built meaningful tax relief into the process: on the loan you take, the rent you earn, and eventually the property you sell. One important caveat to keep in mind is that most of these deductions are available only under the old tax regime, which is no longer the default. For property buyers with a significant home loan, the old regime is often more beneficial precisely because the interest deduction under Section 24B can offset a large portion of taxable income. Calculate your liability under both before choosing. When you buy with a home loan The interest you pay on a home loan qualifies for a deduction of up to Rs 2 lakh a year under Section 24B (old regime only), provided the property is self-occupied. If you have let out the property, there is no ceiling on the interest deduction; the entire amount can be set off against you

This article was originally published on June 01, 2026.