Section 80C: Tax Benefit on Home Loan
The principal amount is covered under Section 80C and has a Rs. 1 lakh limit. This is only available to you if you’re living in the house that you have taken the loan for. That means you can’t use this exemption if the house is under construction or if you are not living in it.

The only exception to this condition is if you work in a different city. If you work in a different city then you can claim exemption on the principal amount of your home loan under 80C.

Section 24: Tax Benefit on the Interest On Home Loan
The maximum limit under this section is Rs. 1,50,000 and you don’t have to actually live in the house to claim this benefit.

The interest payment is deducted from your taxable income and thus reduces your tax liability. There is no limit on the number of houses you can claim this as well as the location of the houses. The only limit is Rs. 1,50,000 on the whole amount.