Explanation
Under Section 24(b) of IT Act 1961 (carried forward in IT Act 2025): Self-occupied property: maximum interest deduction ₹2,00,000 per year — available ONLY under the old tax regime. Let-out property: actual interest paid is deductible (no cap) from rental income; if a loss results, only ₹2,00,000 can be set off against other income in that year. The balance loss is carried forward for 8 years. Pre-construction interest is deductible in 5 equal instalments starting from the year of possession. Principal repayment is deductible under Section 80C (§123). Verify on the income-tax portal before filing.