If you're a salaried employee planning to take a home loan or have already availed one, it's important to understand the tax benefits available to you. Below is a detailed overview of the maximum tax deductions under different sections of the Income Tax Act related to home loans:

1. Interest on Home Loan (Section 24(b))
You can claim a deduction of up to Rs 2 lakh per year from your taxable income for the interest paid on your home loan. This deduction is applicable under the following conditions:
•    The construction of the house must be completed within five years of availing the loan.
•    The property can be either self-occupied or rented out.

2. Principal Repayment of Home Loan (Section 80C)
You are eligible for a deduction of up to Rs 1.5 lakh per year for the repayment of the principal amount on the home loan. However, this deduction is part of the overall Section 80C limit, which also includes other eligible investments such as PPF, EPF, and insurance premiums.

3. Tax Deductions for Joint Home Loans
If you take a joint home loan with your spouse or another co-owner, both parties can claim separate deductions for interest and principal repayment, up to the aforementioned limits. This benefit applies only under the old tax regime. The new tax regime, introduced in the 2023 budget, does not include these deductions.

4. TDS Adjustments
To ensure proper TDS (Tax Deducted at Source) adjustments, obtain a Home Loan Interest Certificate from your lender. Share this certificate with your employer for TDS adjustments or file it under the deduction section when submitting your Income Tax Returns (ITR).