The loss on self-occupied property is capped to 2lacs. Any excess interest payment can be carried forward to next 8-years. Let's say in the coming years if the interest component falls below 2lacs, can losses carried forward be added to make interest deduction to 2 lacs.
ex. total interest paid first year: 2.4 lacs. 2 lacs claimed as interest 40k carried forward.
2nd year interest paid is 1.7 lacs. can 30k from previous year be added to make total exemption 2 lacs and remainder 10k again carried forward?
asumming the rax payer has only one house (self occupied) and earning is only from salaray?