The deduction form house property – Section 24 of the Income Tax Act gives some direction in the benefits that income tax authorities provide as a result of serving housing loan.
The available u/s 24(b) deduction is handled in this section – The interest which is paid on the capital borrowed for buying, repair, construction, renewal or reconstruction of the property. This means that within the same financial year you are allowed to deduct the equivalent amount of the total payable interest from your taxable income on the housing loan, the maximum amount that can be deducted if borrowed on or after 1st April 1999 in the case of self-occupied property to Rs. 2,00,000.

Criteria:

1. Capital that is borrowed on or before 1st April 1999 for purchase or construction of a property.
2. The construction or purchase needs to be completed within 5 years (3 years, applicable up to the Assessment year 2916-17) starting from the financial year in which the capital was borrowed.

Important Reminder:
The pre-construction period interest is deductible in equal five instalments. The instalment is deductible in the same year the construction of the property is completed or in which the property is purchased. If the capital is borrowed for purposes other than the one mentioned above like repair or renewal of the property, the house then the maximum deductible amount is Rs. 30,000.
Section 80C (2) (xviii) of the Income Tax Act

Deduction from Gross Total Income
A deduction of up to Rs. 1,15,000 is available on the repayment of the principal amount, this limit is within the overall limit of Rs. 1,50,000 lakh which is mentioned in the 80C section of the Income Tax Act. Other things like stamp duty, registration fee and other paid expenses for the transfer of such house or property to the assessee is also considered in this amount. This deduction is made from your Gross Total Income.

Income Tax Certificate:
The requisite proof required for you to avail the tax benefits that will result in the repayment of the home loan is issued by every bank with Income Tax Certificate.
This contains the total amount of the capital and interest that will be repaid during the following year. It is mandatory to have the Income Tax Certificate in order to claim the tax benefits with respect to the self-occupied property. The certificate needs to be file along with your tax returns and submit it to your Chartered Accountant or employer for calculating the tax liability.