**Section 24 (B)**
The interest component of home loans is allowed as deduction under Section 24B for up to Rs 2 lakh in case of a self-occupied house. If your property is a let-out one then the entire interest amount can be claimed as tax deduction. (Read: Understanding Tax Implications of Income from house property)
This is a new proposal which has been made in Budget 2016-17. First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met for claiming tax deduction under section 80EE.
* The home loan should have been sanctioned in FY 2016-17.
* Loan amount should be less than Rs 35 Lakh.
* The value of the house should not be more than Rs 50 Lakh &
* The home buyer should not have any other existing residential house in his name.