Tax Benefits of Buying a Home: What Every Jaipur Buyer Should Know in 2026

Buying a home is one of the most significant financial decisions you’ll make in India and historically, the tax code has rewarded it well. But the rules have changed in recent years, and many of the tax-saving headlines you’ll see online are out of date.

This guide gives you an honest, current picture of the tax benefits available to a Jaipur homebuyer in 2026—including what’s been discontinued and what still applies.

IMPORTANT – Read this first: Old Tax Regime vs New Tax Regime: Since FY 2023-24, India’s New Tax Regime is the DEFAULT regime. Under the New Regime, most of the home-loan deductions discussed below—Section 80C, Section 24(b) for self-occupied property, and Section 80EEA—are NOT available. To claim them, you must specifically OPT IN to the Old Tax Regime when filing your return. Before assuming any tax savings on a home purchase, compare your total tax liability under both regimes. For some buyers, the New Regime (with its lower slab rates but fewer deductions) still works out better. Consult a chartered accountant for your specific situation.

Benefit 1: Section 80C – Principal Repayment Deduction

Under Section 80C of the Income Tax Act, you can claim a deduction of up to ₹1.5 lakh per year on the principal amount repaid on your home loan (available under the Old Tax Regime only).

This is part of the broader ₹1.5 lakh 80C limit that includes PPF, ELSS, life insurance, EPF, and similar instruments. If you haven’t maxed out 80C through other instruments, home loan principal repayment is one of the easiest ways to fill that bucket.

Two important caveats:

• This benefit becomes available only after the construction is complete. Under-construction property buyers must wait until possession.
• There is a 5-year lock-in. If you sell the property within 5 years of taking possession, the 80C deductions claimed in earlier years are reversed and added back to your taxable income in the year of sale.

Benefit 2: Section 24(b) – Interest Payment Deduction

This is often the larger benefit. Under Section 24(b), you can deduct up to ₹2 lakh per year on the interest paid on your home loan for a self-occupied property (available under the Old Tax Regime only).

For a ₹30 lakh loan at 8.5% interest, the annual interest in the early years exceeds ₹2.5 lakh—meaning you’re likely to fully use the ₹2 lakh Section 24 deduction every year in the initial period.

For let-out (rented) property, the position is different and worth understanding carefully:

• You can claim the full actual interest as a deduction against rental income within the ‘Income from House Property’ head.
• However, if this results in a net loss from house property, only up to ₹2 lakh of that loss can be set off against your other income heads (salary, business, etc.) in a given year, under Section 71.
• Any unabsorbed loss can be carried forward for up to 8 years to set off against future house-property income.

Benefit 3: Section 80EEA – Not Available for New Loans

You may have read about Section 80EEA offering an additional ₹1.5 lakh deduction on home loan interest for first-time buyers. Here’s the honest position in 2026:

Section 80EEA applies ONLY to home loans sanctioned between 1 April 2019 and 31 March 2022. The provision was not extended in subsequent Finance Bills. If you are taking a new home loan in 2026, you CANNOT claim Section 80EEA.

Borrowers whose loans were sanctioned in that 2019–2022 window can continue to claim 80EEA each year until the loan is fully repaid, provided they meet the other conditions and opt for the Old Tax Regime. New buyers in 2026 should plan their tax savings without counting on this benefit.

Benefit 4: Stamp Duty and Registration Charges (within Section 80C)

Stamp duty and registration charges paid at the time of property purchase can be claimed as a deduction under Section 80C within the same ₹1.5 lakh annual limit shared with PPF, ELSS, etc. This deduction can be claimed only in the financial year in which the charges are actually paid.

In Rajasthan, stamp duty is 6% for male buyers and 5% for female buyers, plus 20% labour cess on the stamp duty, plus 1% registration. On a ₹35 lakh property, total stamp duty and registration for a male buyer comes to roughly ₹2.8 lakh, of which up to ₹1.5 lakh can be claimed under 80C in that year (subject to the overall limit).

Benefit 5: No GST on Ready-to-Move Properties

While not technically an income tax benefit, this is a real saving. Under-construction homes attract 5% GST (or 1% for affordable housing) on two-thirds of the agreement value (one-third being deemed land cost). Ready-to-move properties with a completion certificate attract zero GST.

On a ₹40 lakh non-affordable home, that’s roughly ₹1.33 lakh of GST avoided by buying ready-to-move. On an affordable-housing-classified home (under ₹45 lakh, carpet area within prescribed limits), the avoided GST is closer to ₹26,000–30,000. Smaller than the often-quoted ‘2 lakh’ figure, but still meaningful.

How Much Can You Actually Save in 2026?

Let’s put it together honestly for a Jaipur homebuyer in 2026 taking a ₹30 lakh home loan, opting for the Old Tax Regime:

1. Section 80C (Principal + stamp duty / registration): up to ₹1,50,000 deduction (combined cap, shared with other 80C instruments)
2. Section 24(b) (Interest, self-occupied): up to ₹2,00,000 deduction
3. Section 80EEA: NOT available for new loans

Total annual deductions: up to ₹3.5 lakh. For someone in the 30% tax bracket under the Old Regime (and after factoring in cess), the tax saving is approximately ₹1 lakh per year—meaningful, but smaller than older guides claim because 80EEA is no longer in play.

And to repeat: this entire calculation is only relevant if you OPT for the Old Tax Regime. Under the default New Regime, you get none of these deductions but pay lower slab rates.

One Final Tip: Use Both Spouses’ Benefits

If you’re buying with a joint home loan with your spouse—and both of you are co-owners and co-borrowers—both of you can individually claim deductions under 80C and 24(b) in proportion to your ownership share. For working couples in Jaipur who both fall under the Old Regime, this can effectively double the tax benefit on the same property.

DISCLAIMER: This article is for general information only and is not tax advice. Tax laws change frequently and individual circumstances vary widely. Please consult a qualified chartered accountant or tax advisor before making decisions based on tax implications.

Own a home. Plan your taxes wisely. Build a legacy. Explore Abhinandan Group’s affordable homes in Jaipur starting at ₹24 lakhs. Visit abhinandangrp.com.