Under Section 80EEA of the Income Tax Act, the maximum deduction limit an individual can claim is up to Rs. 1.5 lakh per financial year. This deduction is available only for first-time homebuyers. It can be claimed for the interest paid on a home loan. It is important to note that the deduction only applies to the home loan's interest component and not to the principal amount. By taking advantage of this deduction, first-time homebuyers can significantly reduce their tax liability and make owning a home more affordable.