Exemption Snapshot
Maximum Deduction Cap
₹3,50,000 Combined
Annual IT Act Exemption
Potential Direct Tax Savings
Up to ₹1,09,200 / year
Cash kept in your bank
Eligible Tax Regime
Old Tax Regime exclusive
Budget FY 2026-27 Guidelines
How This Deduction Directly Lowers Your Monthly TDS
When you submit investment declarations to your company HR portal via Form 12BB, payroll calculates your projected annual tax liability after subtracting these statutory deductions, dividing the remaining tax evenly across 12 monthly payslips.
Frequently Asked Questions
How much tax can I save on a home loan under Section 24(b)?
You can deduct up to ₹2,00,000 per financial year on home loan interest payments for a self-occupied property, saving up to ₹62,400 in direct income tax for individuals in the 30% slab.
Can I claim both HRA and Home Loan tax deductions simultaneously?
Yes. If your own house is in a different city or you live in rented accommodation due to employment constraints, you can legally claim both HRA under Section 10(13A) and Home Loan interest under Section 24(b).
Compare Old vs New Tax Regime for Your Salary
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