The Income Tax Act, 1961 allows tax deduction to taxpayers on repayment of home loans. These deductions can broadly be understood as mentioned below:

Particulars Under Section 24 Under Section 80C
Deduction allowed for Interest Principal
Basis of deduction Accrual Actual Payment
Quantum of deduction allowed Self Occupied Property: Rs150,000 Non Occupied Property: No Limit Rs100,000
Purpose of Loan Purchase/ Construction/ Repair/ Renewal/ Reconstruction of a Residential Property Purchase/Construction of a new Residential Property
Eligibility for Claiming Tax Deduction Purchase/Construction should be completed within 3 years None
Restriction on Sale of Property None Tax Deduction reversed if the property is sold within 5 years

As the benefits could vary from year to year, it is advisable to check the current benefits available, with your tax consultant or with the Income Tax Dept. of India (