Housing Loan Exemption Maximum limit for Both Self and let out property

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This discussion clarifies the tax deduction limits for housing loan interest. For self-occupied properties, the maximum deduction is £200,000. However, for let-out properties, the entire interest paid can be claimed. If you have multiple properties or your interest exceeds £200,000, you may need to file ITR-2 to claim the full benefit and carry forward any losses.

Ratheesh

Ratheesh (Querist)

11 July 2023 Dear Sir,

I have a Housing Loan and I am going to pay 4 Lakh as Interest in a year. And I have one house which one part is self occupied and one part I am giving for Rent (Monthly Rent 9000). So my question is how can I claim this for my TDS deduction, What is the maximum I can claim under housing loan interest both self occupied and let out property ?

Thanks in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 July 2023 In the case of self-occupied property, the deduction for interest on Home Loan have a maximum limit of INR 2,00,000. Whereas in the case of a let-out property, you can claim the entire amount of interest as a deduction.

Ratheesh

Ratheesh (Querist)

12 July 2023 Thank you for the reply Sir,

But Its not accepting more than 2 Lakh while doing TDS return and even Income Tax Web portal it's taking maximum 2 Lakh only. And I am getting below message if I add more than 2 Lakh

"Warning : Maximum Loss from House Property that can be set-off in computing income of this year is INR 2,00,000. To avail the benefit of carry forward and set off of loss, please use ITR-2"

Thank you....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 July 2023 In case of two house property it's required to file ITR 2.
File ITR 2 it will accept more than 2 lacs for two houses.

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