Deduction of interest on housing loan:

In the case of self-occupied property acquired or constructed out of borrowed funds, the deduction available for interest on capital borrowed is Rs. 1,50,000/-. In case of a rented property, the whole of the interest amount is allowed as deduction. The interest on borrowed funds in pre-construction period is allowed over a 5-year period commencing from the previous year in which the house is acquired or constructed.

Limit of repayment of housing loan (principal):

The limit of repayment of housing loan qualifying for deduction u/s 80C is Rs. 1,00,000/- (including Stamp Duty, Registration Fee incurred for the purpose of transfer of such residential house property).