Tax deduction for home loan

On the main amount of your home loan that you repay, you are eligible to claim a tax exemption of up to Rs. 1.50 lakh every fiscal year. Additionally, interest paid on mortgage loans is excluded from taxes (full interest amount is allowed as exemption in case of let-out property, whereas in case of self-occupied property, the exemption is up to Rs.2 lakh). You will lose these tax benefits if you fully prepay your mortgage; if you partially prepay, your tax benefits will be lesser.