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Upper limit to tax deduction on house loan emi in old tax regime for let out house

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fsad sa

houswise

21 Points Posted on 31 December 2023

i am getting conflicting data regarding the limit to tax deduction. there is a 2L limit mentioned in some places, and in others no limit is mentioned, if the house is let out.

please confirm which is accurate. home loan is taken for a house that will be rented out, and the loan amount is 50L, emi will be around 50K with annual outgo of about 4L as interest component. Currently tax paid is around 7L, so can 4L be adjusted with that.

this is the second house taken on loan, and the interest of the previous loan is currently being claimed as deduction. (also rented out)

Replies (3)

Quick Summary

This discussion clarifies the tax deduction limits for home loan EMIs on let-out properties under the old tax regime. While some sources suggest a £2 lakh limit, for properties that are rented out, the entire interest component of the home loan EMI is deductible under Section 24(b). This applies even if it's a second property and you're already claiming deductions on another rented-out property.