Home loan interest: ₹2 lakh cap, and the let-out rule
The income tax portal's page for salaried individuals, AY 2026-27, sets out section 24(b) like this:
| House | Old regime | New regime |
|---|---|---|
| Self-occupied, loan on or after 1/04/1999 for purchase or construction | Up to ₹2,00,000 | Listed only for let-out |
| Self-occupied, repairs | Up to ₹30,000 | Listed only for let-out |
| Let out | Actual interest. Loss set off against other heads up to ₹2,00,000, the rest carried forward up to 8 assessment years | Actual interest, but the loss can't be set off against other heads or carried forward |
Example
Illustrative example only. Interest ₹2,60,000 on a self-occupied flat, old regime: you claim ₹2,00,000. The same interest on a let-out flat earning ₹1,20,000: the loss is ₹1,40,000. Old regime: it can be set off. New regime: it can't.
⚠️ Note
These are the numbers for AY 2026-27. For later years, check the department's current page.
Before you claim
- ☐ Get the interest certificate from your bank
- ☐ Note loan account number and date of sanction
- ☐ Note the loan outstanding at year end
- ☐ Mark the house self-occupied or let out
Letting it out? The rent agreement is ready, fill it in →
Source: incometax.gov.in, Salaried Individuals for AY 2026-27, section 24(b).