Can I use a home loan tax benefit calculator for a renovation loan?

A regular home loan tax benefit calculator cannot be directly used to calculate the benefits of a home renovation or improvement loan. This is because the tax benefits applicable are different in both cases.

For a home renovation loan, the following key points should be noted with respect to tax benefits:

• Principal Repayment: The principal repaid on a renovation loan does not qualify for a deduction under Section 80C.
• Interest Paid: The interest paid can be claimed as a deduction under Section 24:
• Self-Occupied Property: Up to ₹2 lakhs.
• Let-Out Property: Without any limit, subject to declaration of rental income.
• Other Deductions: Property tax paid on the renovated property and interest paid on a loan taken to acquire a plot of land for the construction or renovation of a house can also be claimed as deductions.

It is important to consult with a tax professional to accurately calculate the tax benefits applicable to your specific situation.