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Information Hub/Income/Rental Income
Deductions for Interest on Housing Loan
Published : 27 Oct 21, 00:00
| Particulars | Self Occupied Property | Let Out Property |
| Deduction under the head "Income from House Property" | Deduction up to Rs 2 lakhs (Please refer Note: 1) | Entire interest allowed as deduction |
| Additional deduction if loan sanctioned in financial year 2016-17 (Please refer Note 2) | Additional deduction up to Rs 50,000 | Additional deduction up to Rs 50,000 |
Note:
1 Deduction is subject to below conditions:
| Condition | Interest Limit (in Rs) |
| Loan taken before 01 April 1999 | 30,000 |
| Amount borrowed between 01 April 1999 and 31 March 2015 and acquisition or construction completed within 3 years from end of financial year in which loan availed | 1.5 lakhs |
| Amount borrowed after 01 April 2015 and acquisition or construction completed within 5 years from end of financial year in which loan availed | 2 lakhs |
| Amount borrowed for repair, renewal, reconstruction | 30,000 |
If condition of time period for completion of construction not satisfied, deduction restricted to Rs 30,000.
Note: 2 Additional deduction up to Rs 50,000 provided:
- Loan is sanctioned between 01 April 2016 to 31 March 2017
- Loan amount sanctioned is less than Rs 35 lakhs
- House property value is less than Rs 50 lakhs
- Loan taken from financial institution for acquisition of residential property
Benefit of deduction is extended till repayment of loan.
