Home loan interest deduction under section 24(b). A self-occupied property caps the deduction; a let-out property allows the whole interest but caps the loss you may set off.
Also called: home loan interest deduction, section 24.
₹2,00,000 allowed against 3,50,000 paid, saving ₹62,400. A self-occupied property caps this at 200000, so 150000 is lost.
Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.
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The two cases behave differently. On a self-occupied property the interest deduction is capped and anything above it is simply lost. On a let-out property the whole interest is allowed against the annual value, which is rent less municipal tax less a flat thirty percent standard deduction, and the resulting loss from house property can be set off against other income up to a statutory limit with the balance carried forward.
a self-occupied property caps the interest deduction; a let property allows it in full against rent less 30% and municipal taxEach of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.
Interest deduction allowed₹3,50,000
Worked by hand: rent less municipal tax, then 30%
Open this exampleInterest deduction allowed₹2,00,000
boundary: the cap binding, with the excess lost
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