Look at the break-up of your home loan EMI carefully to maximize deduction
Under Section 80C, you can claim a deduction of up to ₹1.5 lakh on repayment of the principal component
If you sell your house within 5-year from the purchase or date of possession, the deduction claimed on principal repayment in the previous years will get revoked
Before you leap on to make fresh tax saving investments, you should first look at the expenses that qualify for deductions. One such expense is repayment of a home loan. If you are a salaried individual in the highest tax bracket of 31.2% (including cess, but excluding surcharge) you can reduce your tax outgo by as much as ₹1.56 lakh by claiming all the deductions available against repayment of a home loan.