How home loan borrower can benefit from tax deductions

The Income Tax Act provides a separate head for tax of ‘Income from House Property’ under Section 22 to Section 27.

Interest paid or payable on money borrowed for the purchase, construction, repair, or reconstruction of a house is allowed as a deduction. In case of a self-occupied property treated as such, the maximum deduction will be Rs 30,000 per annum.
If the funds have been borrowed for the acquisition or construction of a house after 1 April 1999, Rs 1.50 lakh will be deductible.

Source:TNN