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Gillco Meraqui Journal

Tax Benefits on Home Loans: What Mohali Buyers Should Know

Last Updated: August 2026

Understand the tax benefits available on home loans in India — principal repayment, interest deduction & stamp duty relief — before financing your Mohali flat.

Primary research topic: home loan tax benefits india

Why This Matters for Your Overall Budget

Home loan tax benefits genuinely change the effective cost of a purchase over time, but they're often misunderstood or overestimated. Understanding what applies — and, importantly, what regime you're filing under — helps you plan realistically rather than assume every rupee of interest and principal automatically comes back to you.

Deduction on Principal Repayment — Section 80C

Under the old tax regime, principal repayment on a home loan is eligible for deduction under Section 80C, within the combined ₹1.5 lakh overall 80C limit (which also covers other instruments like PPF, ELSS, and life insurance premiums) — meaning this isn't an additional standalone benefit if you're already maxing out 80C elsewhere.

Deduction on Interest Paid — Section 24(b)

Interest paid on a home loan for a self-occupied property is eligible for deduction under Section 24(b), typically up to ₹2 lakh per financial year under the old regime. For a let-out (rented) property, the interest deduction rules differ and can, in some cases, exceed this cap — this is a genuinely material distinction for anyone considering renting out a unit.

Gillco Meraqui garden promenade and classical landscape setting
Project visual supplied by Gillco Meraqui.

The New Tax Regime — A Key Consideration

Many of these deductions are available only under the old tax regime; the new tax regime (with its lower slab rates) generally doesn't allow these specific home loan deductions. Before assuming these benefits apply to you, confirm which regime you're filing under and run the comparison — for some taxpayers, the old regime with these deductions still works out better; for others, the new regime's lower rates outweigh giving up the deductions.

Pre-Construction Interest

Interest paid during the construction period (before possession) on an under-construction property like Gillco Meraqui can be claimed in five equal instalments starting from the year construction is completed — this is a commonly overlooked benefit for buyers of under-construction luxury projects.

Stamp Duty and Registration Deduction

As covered in our stamp duty guide, these charges are also eligible for 80C deduction (within the same combined limit) in the year of registration, for a new residential property — another reason to time your registration thoughtfully within a financial year if it affects your overall 80C utilization.

Buyer checklist

Keep the next step clear.

  1. Request the latest official project material relevant to this guide.
  2. Write down any commercial, legal, technical, or timeline points that need confirmation.
  3. Compare those documents against the needs of your household and budget.
  4. Take independent professional advice where a decision is consequential.

Questions, answered

Research with clarity.

Are home loan tax benefits available under the new tax regime?

Generally no — most home loan-related deductions (80C principal, Section 24 interest) are old-regime benefits; confirm current rules with a tax advisor since regime rules are periodically revised.

Is the ₹2 lakh interest deduction limit per property or per person?

It's generally per taxpayer per self-occupied property; joint owners who are both co-borrowers can each claim deductions on their respective share, subject to individual limits.

Can I claim tax benefits on an under-construction property before possession?

Not during construction itself, but pre-construction interest can be claimed in five equal instalments starting the year construction completes and possession is taken.

Do second-home buyers get the same tax benefits?

Rules differ for a second self-occupied vs. let-out property — the interest deduction cap and treatment change based on occupancy status, so this needs specific advice for your situation.

Is stamp duty deductible in addition to the home loan interest and principal deductions?

Yes, but stamp duty falls within the same combined ₹1.5 lakh Section 80C limit as principal repayment — it's not a separate additional deduction bucket.

Should I choose the old or new tax regime if I'm buying a home loan-financed property?

This depends on your total income, other deductions claimed, and the loan amount — running both scenarios with a tax advisor before filing is the only reliable way to know which is better for your specific situation.

Do co-applicants each get to claim the full deduction limits separately?

Generally yes, provided both are co-owners and co-borrowers with their own income and tax liability — confirm the exact split rules with a tax professional.

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