Section 24: Home Loan Interest Deduction Guide#
What is Section 24?#
Section 24 allows deduction for interest on home loan for self-occupied property.
Deduction Limits#
Self-Occupied Property:#
- Interest: Rs 2 lakh/year
- Previous house: Rs 2 lakh (if not claimed before)
Let-Out Property:#
- Full interest allowed
- Loss can be set off
Conditions#
- Property should be in India
- Loan from bank/financial institution
- Construction completed
- Certificate from lender
Calculation#
For New Property:#
Interest for first year: Rs 2 lakh (under Section 24)
- Pre-construction interest: Rs 2 lakh (over 5 years)
Example:#
Home loan interest: Rs 3,00,000 Deduction allowed: Rs 2,00,000
Important Points#
- Not available under new tax regime
- Can claim for let-out property
- Loss from house property can be set off
- Carry forward allowed (8 years)