Home loans, education loans and health insurance: tax benefits
Under the old regime: up to ₹2 lakh home-loan interest on a self-occupied house, education-loan interest with no cap, ₹1.5 lakh under 80C, and up to ₹1 lakh for health insurance under 80D. The new regime allows almost none of these.
Tax Colony is an independent educational site, not a tax adviser or filing service. Verify with official sources or a professional before acting.
These limits are the ones the e-filing portal enforces for FY 2025-26 returns (AY 2026-27). Whether the Income-tax Act 2025, in force from FY 2026-27, keeps the same amounts: Needs review.
Old regime only
The default new regime does not allow 80C, 80D, 80E, 80EE/80EEA, 80TTA/80TTB or the home-loan interest set-off on a self-occupied house. Compare both regimes before choosing: see income tax regimes.
Loans
| Benefit | Limit |
|---|---|
| Home loan interest, self-occupied house (section 24(b)) | up to ₹2,00,000 |
| Home loan principal (inside 80C) | within ₹1,50,000 |
| Extra first-home interest (80EE / 80EEA) | only after the 24(b) limit is used up; 80EE needs a loan of ₹35 lakh or less Needs review |
| Education loan interest (80E) | no cap; interest only |
For a let-out property, interest is deducted from rental income, and that is also allowed in the new regime.
Insurance and investments
| Benefit | Limit |
|---|---|
| 80C + 80CCC + 80CCD(1): life insurance premium, PPF, ELSS, EPF, tuition fees, home-loan principal | ₹1,50,000 combined |
| Extra NPS contribution (80CCD(1B)) | ₹50,000 |
| Health insurance (80D), self and family | ₹25,000 (₹50,000 if senior citizen) |
| Health insurance (80D), parents | ₹25,000 (₹50,000 if senior citizen) |
| Preventive health check-up | ₹5,000, within the 80D limits |
| 80D total | at most ₹1,00,000 |
| Savings account interest (80TTA) | ₹10,000 |
| Senior citizens’ deposit interest (80TTB, residents) | ₹50,000 |
Employer NPS contribution (80CCD(2)) is allowed in both regimes.
See the full list in income tax deductions.
Sources
- CBDT: ITR-3 validation rules, AY 2026-27
- CBDT: ITR-2 validation rules, AY 2026-27
- Income Tax Department: Income-tax Act 2025
Last verified: 4 Nov 2026