With the introduction of new tax slabs, here's how the income tax slab restructuring and tax benefits on home loan repayments help you save more.
 

Note: Income slabs in brackets are applicable for financial year 2009-10 (before budget).

Note: Additional cess and surcharges as applicable. Figures in rupees.

Saving after availing deductions on home loan interest and principal repayments

Note: It is assumed that the maximum income tax deduction on home loan repayments under Section 80C and Section 24 are availed.

Section 80C: The principal repayment that you make on your home loan is eligible for income tax deduction under Section 80C. The limit under Section 80C is Rs 1 lakh. This will include investments like provident fund, life insurance premium, equity-linked savings schemes of mutual funds, infrastructure bonds, pension plans and home loan principal repayment.

Section 24: Under Section 24, the maximum amount of interest on a home loan towards a self-occupied house that can be deducted from your income is Rs 1.5 lakhs. As a result, your taxable income decreases by that amount.

Source: Economic Times