How many properties can a taxpayer claim as Self-Occupied (SOP)?

Effective from AY 2020-21 (amended by Finance Act 2019), an assessee can claim up to 2 residential properties as self-occupied with Net Annual Value (NAV) taken as Nil (₹0). If a taxpayer owns more than 2 vacant/self-occupied properties, 2 can be selected as SOP and the remaining are treated as Deemed Let-Out Property (DLOP) under Section 23(4).

What is the maximum interest deduction available on a Self-Occupied Property under Section 24(b)?

Under the Old Tax Regime, interest deduction under Section 24(b) for SOP is capped at ₹2,00,000 per FY provided the loan was taken on/after 01-04-1999 for acquisition/construction completed within 5 years from the end of the FY in which capital was borrowed. For repairs or delayed construction, the limit is ₹30,000. Under New Tax Regime (Section 115BAC), interest on SOP is completely disallowed.

Is there an upper ceiling on home loan interest deduction for Let-Out Property (LOP)?

No, under Section 24(b), there is NO statutory upper limit on interest deduction for let-out (LOP) or deemed let-out (DLOP) properties. The entire actual interest paid during the year is deductible against rental income.

How is loss from house property set off against other heads of income under Section 71(3A)?

Under the Old Tax Regime, Section 71(3A) restricts the set-off of house property loss against other heads of income (such as salary or business profits) to a maximum of ₹2,00,000 in a financial year. Any unabsorbed loss exceeding ₹2,00,000 is carried forward for up to 8 assessment years under Section 71B to be set off exclusively against house property income.

House Property & Home Loan Tax Calculator | Section 24b & 80C | SKM Laws

House Property Statutory Parameters

Property & Loan Parameters

Property Occupancy Status *

Income Tax Regime *

FY (Assessment Year)

Taxpayer's Ownership Share (%)100%

Housing Loan & Interest Deductions (Section 24(b))

Purpose of Housing Loan

Annual Housing Loan Interest Paid (₹)

Total Pre-Construction Interest (prior to completion FY) (₹)

Eligible for Section 80EEA Affordable Housing (Sanctioned 2019-2022, SDV <= ₹45L)

Taxpayer's Marginal Income Tax Slab Bracket30%

House Property Tax Computation

Self-Occupied Property (SOP)

Old Regime100% Share

Net House Property Loss

-₹2,00,000

Current-year set-off: ₹2,00,000 | Carried forward: ₹0

Estimated Tax Savings₹93,600Total deduction base: ₹3,00,000

Net Annual Value (NAV)

₹0

Section 23(2) Nil

Sec 24(b) Interest Deduction

₹2,00,000

Capped at ₹2,00,000

Sec 80C Principal & Stamp

₹1,00,000

Within ₹1.5L Headroom

Detailed Statutory Computation

Gross Annual Value (GAV)₹0

Municipal Taxes Deducted₹0

Net Annual Value (NAV)₹0

Section 24(a) Standard Deduction (30%)₹0

Section 24(b) Current Year Interest₹2,20,000

Net Income / (Loss) from House Property-₹2,00,000

Section 71(3A) Current Year Set-Off Cap₹2,00,000

Section 80C Principal & Stamp Duty₹1,00,000

Consult Tax Advocate

Statutory Disclaimer: This calculator provides an indicative tax estimate under Chapter IV-C and Chapter VI-A of the Income-tax Act, 1961. Actual tax relief depends on complete income tax computations, interest certificates (Form 12BB), municipal receipts, and final return filing.

Statutory Framework & Compliance Principles

6 Core Principles of House Property Taxation

Governed by Chapter IV-C (Sections 22 to 27), Chapter VI-A (Section 80C), and Section 115BAC of the Income-tax Act, 1961.

1. NAV Determination: SOP vs LOP

Under Section 23(2), up to 2 self-occupied residential properties (SOP) have a Net Annual Value (NAV) of Nil (₹0). For let-out properties (LOP), NAV is Gross Annual Value minus municipal taxes actually paid by the owner.

2. Section 24(a): 30% Standard Deduction

A flat statutory deduction of 30% of Net Annual Value (NAV) is allowed for let-out / deemed let-out properties to cover repairs and maintenance, irrespective of actual expenditure incurred. SOP has ₹0 std deduction.

3. Section 24(b): Home Loan Interest Limits

For SOP under Old Regime, interest deduction is capped at ₹2,00,000 for purchase/construction (completed within 5 years) and ₹30,000 for repair. For let-out properties, the entire actual interest is deductible without upper ceiling.

4. Pre-Construction Interest (5 Equal Slices)

Interest paid prior to the financial year of construction/acquisition completion is aggregated and deducted in 5 equal annual installments starting from the FY of completion (subject to overall ₹2L SOP cap).

5. Loss Set-Off (Sec 71(3A)) & Carry Forward (Sec 71B)

Under Section 71(3A), loss from house property can be set off against any other head of income (salary, business) up to a maximum of ₹2,00,000 per FY. Unabsorbed loss is carried forward for up to 8 years under Section 71B.

6. New Tax Regime (Section 115BAC) Restrictions

Under Section 115BAC, Section 24(b) interest deduction on SOP is completely DISALLOWED. For let-out properties, deductions are allowed against rental income, but resulting net loss CANNOT be set off against other heads.

Frequently Asked Questions