Section 24(b) Home Loan Interest Calculator

Calculate tax deduction on home loan interest under Section 24(b) of Income Tax Act.

Calculate Interest Deduction

Claimed in 5 equal installments

Section 24(b) Deduction

Enter loan interest details to calculate deduction.

Section 24(b) Rules

Self-Occupied Property

Maximum Deduction: ₹2,00,000 per financial year Conditions for full ₹2L limit: • Loan taken for purchase/construction (not repair) • Loan taken on or after 01-Apr-1999 • Construction/purchase completed within 5 years from loan date • Self-occupied for residence If above conditions not met: Limit is ₹30,000

Let-Out Property

Maximum Deduction: NO LIMIT Entire interest paid is deductible against rental income. Can result in loss under house property head. Loss set-off limit: ₹2,00,000 against other income Remaining loss: Carry forward for 8 years

Pre-Construction Interest

Interest paid during construction period (before possession) can be claimed in 5 equal installments starting from: • Year of completion/possession This is IN ADDITION to regular interest in that year, but total is still subject to ₹2L limit for self-occupied.

Important Notes

  • NOT in New Regime: Section 24(b) deduction for self-occupied property is NOT available in new tax regime
  • Joint Owners: Each co-borrower can claim deduction in proportion to their share
  • Principal: Principal repayment is under 80C (₹1.5L limit), not 24(b)
  • 2nd Home: From AY 2020-21, you can treat any one property as self-occupied; others are deemed let-out

FAQs

For self-occupied property: ₹2,00,000 per year. For let-out property: No limit (entire interest deductible).

No, Section 24(b) deduction for self-occupied property is NOT available in new regime. Only for let-out property, interest can be claimed against rental income.

Interest paid from loan disbursement till possession of property. It can be claimed in 5 equal annual installments starting from the year of possession.

Yes, if both are co-owners and co-borrowers, each can claim up to ₹2 lakh deduction based on their ownership share and EMI payment.

If construction/purchase not completed within 5 years from loan date, the maximum deduction limit reduces from ₹2 lakh to ₹30,000.

Yes, but only one property can be treated as self-occupied. The 2nd property is deemed let-out and you must show notional rent as income (but can claim full interest deduction).

No, principal repayment is under Section 80C (within ₹1.5 lakh limit). Section 24(b) is only for interest portion of EMI.

Interest on repair/renovation loan is deductible but limited to ₹30,000 (not ₹2 lakh), as the ₹2L limit applies only to purchase/construction loans.

⚠️ Disclaimer: For estimation only. Section 24(b) not available in new regime for self-occupied property.