A home loan on your property (self occupied) helps you get a tax benefit of up to Rs. 1 lakh on principal repayment u/S 80C (Including all your other investments which can be under 80C). Interest repaid is deductible up to Rs. 1.50 lakhs.
On a let out property, the interest deductible is not limited, you can claim full interest paid as a deduction from your annual taxable income.
If you took a home loan and are still living in a rented place, you will be entitled to:
- Tax benefit on principal repayment under Section 80C
- Tax benefit on interest payment under Section 24
- HRA benefit