Interest on housing loan u/s 24(b)

What is the maximum amount we can deduct as interest from head IFHP,for both cases.
1)Self occupied &
2)Letout property
Replies (10)
Self occupied - 2 lakhs
Let out property - no limit
Is there any limit for set off the same?
Yes 2 lakhs is limit for setoff
for self occupied property, only 2 lakhs can be set-off

for let out property, depending upon the net annual value, the setting off interest will vary
no limit on let out , but maximum 200000 on self occupied
Mr. Jai... pls go through the following sub-section 3A to section 71
13[[3A] Notwithstanding anything contained in sub-section [1] or sub-section [2], where in respect of any assessment year, the net result of the computation under the head "Income from house property" is a loss and the assessee has income assessable under any other head of income, the assessee shall not be entitled to set off such loss, to the extent the amount of the loss exceeds two lakh rupees, against income under the other head.]
sir , the question was regarding maximum interest allowed as deduction not the maximum amount that can be set off .

maximum interest allowed in self accoupied is 2 lakhs and no limit on let out .

if there is a loss more than 200000 under house property , the assessee can set off only 200000 ,
bus consider a situation where hp income is 5 lakh and interest is 350000 on let out property , so the HP income shall be 1.5 lakhs (5lakhs-3.5lakhs(not 2 lakhs )).
I also said the same.. depending on rental income, setting off interest varies

Sir, You mean where the Loss from Hp is more than 2 Lakhs (Say 4Lakhs) then Loss up to 2Lakhs gets adjusted/set-off against other heads of Income and the remaining Loss will be Carry forwarded.

yes for self occupied property. .. for let out let's see 2 scenarios when interest on borrowed capital is 5 lacs

when net annual value
1) 5 lacs
less standard deduction - 1.5 lacs
less 24(b) - 5 lacs

income from house property - (-) 1.5 lakhs and that can be set off against other heads of income

2) nav - 4 lacs
less standard deduction - 1.2 lacs
less interest - 5 lacs

income from house property - (-) 2.2 lakhs

out of this 2.2 lakhs only 2 lakhs can be set off balance 20k to be carried forward

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