The days of Income tax rebate on loan are history. There is no provision for rebate on any type of investment / subscription. However, if the house is for personal use and residence, you are entitled to following benefits.
1. Interest on housing loan upto Rs. 150000 is allowed as deduction from your income and your total income would be reduced to that extent. However if the house is given on rent, this limit would not apply and entire interest paid on loan would be allowable as expenditure.
2. Repayment of Housing loan upto Rs. 100000 would be allowable as a deduction from your income under section 80C of the Income Tax Act, 1961. This limit of Rs. 100000 is inclusive of NSC, PPF, LIC premia, Infrasturcture bond, E.L.S.S. etc. However this benefit would not be available if the house is given on rent.
