Repayment of the principal amount of a home loan is allowed as tax deduction under Section 80C. A tax break for payment of interest on home loans is allowed under Section 24. The maximum tax deduction allowed of a self-occupied property is Rs 2 lakh. The entire interest paid in a financial year is eligible for deduction without any limit. This does not mean that interest of up to Rs 10,000 is exempted income.

Source: Economic Times January 08, 2018 00:56 UTC