Find
Under the old regime, the ₹2,00,000 limit for self-occupied houses is a combined limit, not per house. Interest above that is lost for the year. The new regime allows no interest deduction on self-occupied houses.
ITR
Home loan interest limit for two self-occupied houses
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Provisions
Sec 24(b) (now Sec 22(1)(b)); Sec 23, Income-tax Act 1961; Sec 115BAC (now Sec 202)
Analysis
If you paid ₹1,60,000 on one loan and ₹1,20,000 on the other, total ₹2,80,000, you can claim only ₹2,00,000 across both under Sec 24(b) (now Sec 22(1)(b)). The ₹80,000 excess cannot be carried forward. Treating one house as let out, if actually rented, moves its interest outside the cap. Under the new regime, self-occupied interest is not allowed at all.
Close
- Total interest on all self-occupied houses.
- Cap the claim at ₹2,00,000 under the old regime.
- Consider whether either house is actually let out.
- Report interest per property.
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