Home loand and rented house

On the basis of the proportion (50%)

Whole rupees 2,25,000 will be allowed to be deducted for rented portion. (no limit on interest)

For self occupied out of 2,25,000 , 150,000 can  also be claimed. (limit is 1,50,000 for house or PART of house)

For Self Occupied how much interest we can claim?

I thought it is 1.5L? Is it 3.5L?

It was a typo . 1.5 L

For self occupied property Treatment is

In rupees

Net annual value = Nil (u/s 23(2)(a))

Less interest = 150,000 (u/s 24)

(Loss) from self occupied property = (150,000)

Principle payment can be availed as deduction u/s 80c (max 100,000 in 80c,80ccd,80ccc in aggeregate or individually)

For let out (assuming no composite rent and also assuming that letting out is not supplementarty to b/s)

Gross annual value u/s 23(1)(a) / 23(1)(b) / 23(1)(c) (as the case maybe)

Less taxes PAID

Balancing figure = Net annual value

Less 30% of NET ANNUAL VALUE (u/s 24)

Less intrest (u/s 24)  225,000

Balancing figure = Profit/(loss) from the let out property.

In case there is profit in let out property then you can adjust to the extent of 150,000 (i.e loss of self occupied proprty)

Profit/(Loss) from both the properties taken together shall be income u/h Income from house property.

Further if theres any LOSS under head of house property then it can be setoff/adjusted against any other income.