The Income Tax Act allows you to deduct up to 1.5 lakh per year on your home loan principal. Stamp duty and registration charges during the property purchase are included in this deduction under Section 80C, this benefit is available only in the year in which expenses are incurred, and it's part of the overall limit of 1.5 lakh.

In the case of a self-occupied property, Section 24(b) allows a deduction of up to ₹2 lakh per year on interest paid on a home loan only after the construction of the property is completed. Interest paid during the construction period cannot be claimed immediately but is allowed in five equal annual installments starting from the year in which construction is completed. However, under the new tax regime, this deduction is not available.

Section 24(b) allows you to deduct the entire interest paid on your home loan if you rent out the property. For property owners earning rental income, this deduction is a significant tax-saving option. A standard deduction of 30% of the net annual value of the property is allowed, covering repairs, maintenance, and other related expenses.