New vs Old Tax Regime for Home-Loan Borrowers (2026)
Category: Tax & Budget · Published 2026-03-30 · by Priyanka
If you are paying a home-loan EMI, the old regime's Section 24(b) deduction of up to ₹2 lakh on interest is hard to beat. Let's see the math.
Example — ₹50 lakh home loan at 8.5%
Year-1 interest: ~₹4.2 lakh; principal: ~₹1.1 lakh. Even after capping 24(b) at ₹2L and principal within 80C, the old regime saves a lot.
Rule of thumb
- Home-loan borrower + HRA + 80C + 80D = old regime wins.
- Home-loan borrower but rented out (let-out property) → check carry-forward loss under new regime rules.
Confirm with our tax calculator.
Frequently Asked Questions
Can I claim Section 24 home loan interest in new regime?
Self-occupied home-loan interest is not allowed in new regime. Let-out property interest has limited set-off rules.
Is home-loan principal deductible under new regime?
No. Section 80C (which includes principal) is not available under new regime.
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