Home Loan Interest Deduction (Section 24b): Let-Out vs Self-Occupied

Tue, 23 Jun 2026 10:00:00 +0530

Of all the home loan tax benefits, the interest deduction under Section 24(b) is the largest and the most misunderstood. The confusion almost always comes down to one distinction: is the property self-occupied or let out? That single fact decides whether your deduction is capped at Rs 2,00,000 or effectively unlimited, and how much of it you can actually use this year.

There is also a second trap, the same one that catches HRA and most other deductions: the new tax regime, now the default, removes the self-occupied interest deduction entirely. This guide breaks down exactly how Section 24(b) works for each type of property, the set-off limit that quietly caps the let-out benefit, pre-construction interest, and what survives under each regime.

Self-Occupied Property on Mittiyo Blogs

Home Loan Interest Deduction (Section 24b): Let-Out vs Self-Occupied