Are there any tax benefits associated with a loan against property EMI?

There are limited tax benefits available on the EMI of a loan against property.

Salaried individuals can claim tax deduction up to ₹2 lakhs under Section 24(b) on the interest portion of EMI, if the loan is taken for acquiring a self-occupied residential property.

Business owners can claim the interest portion of EMI as a business expense under Section 37(1) for tax deduction if the loan is taken for business purposes.

However, no tax deduction can be claimed if the loan against property is taken for purposes like travel, education, marriage or medical treatment.

Also, the principal portion of EMI cannot be claimed for tax deduction under Section 80C. No deductions are available for processing fees or prepayment charges either.