The position of the levitated object plays an important role in satisfactory working of electromagnetic attraction type of magnetic levitation system. It was observed that position sensors like optical and Hall Effect sensors used for this purpose are clumsy and prone to failure. Two novel self sensing circuits based on resonance technique and synchronous demodulation method have been designed and developed. Two coils are placed on the lifting magnet to perform the lifting and sensing function. These coils are decoupled from each other. The position sensing coil is excited by a 50 Hz source and in the first method change in impedance of the measuring coil in parallel with a capacitor is measured to measure the displacement Y, whereas in the second method, phase difference between the coil voltage and current is measured to measure the displacement. The performance of both the techniques is compared. Hardware results for synchronous demodulation technique are obtained for analog and digital circuits developed.