Home loans are the most sought after loans currently, with all banks and housing finance companies competing to garner a major chunk of the consuming public. Government of India has given impetus to the housing boom by extending various benefits.  We shall discuss the concessions available under Income Tax Act 1961 to the Home Loans.

Income from house property is one of the recognised heads of income under the Income tax act.  The sections 24 and 88 of the act governs various concessions available to the borrowers of  home loans.  The concessions are of two types, deductions and rebate. Certain expenditures are allowed as deductions out of the income from house property, thus reducing the taxable income.  Rebate is the deduction on the tax payable.