Home Loan Tax Benefits: New Tax Regime vs. Old Tax Regime Explained

• Affordable homes are decreasing as developers prioritize luxury projects due to higher profit margins (25-30% vs. 10-12%).
• Many families face high home loan EMIs, sometimes up to 60% of income; financial assessment is crucial before buying.
• Home loan eligibility depends on monthly income, existing EMIs, expenses, and CIBIL score.
• The new tax regime, with tax exemption up to 12 lakh rupees, offers fewer home loan tax benefits compared to the old regime.
• Under Section 24(b), tax benefits on home loan interest for self-occupied homes are not available in the new tax regime; for rented homes, deduction is limited to rental income.

Why It Matters: Carefully assess financial capacity and understand tax implications, especially under the new tax regime, before taking a home loan.