Income tax

Maximum ceiling:

Maximum tax deduction for repayment principal component of home loan can’t exceedone lakh under section 80c.
Housing loan interest deduction, on the other hand, is allowed up to a maximum amount of1.5 lakh under section 24(b). However, the acquisition or construction of the house property should be completed within 3 years from the end of financial year in which home loan was taken; otherwise, the amount of interest benefit allowed is only up to30,000.
Furthermore, the above tax deduction limit u/s 24(b) is applicable only for self-occupied house property. In case of let-out or deemed to be let out house property, interest is deductible fully without any limit.