Explanation
Three scenarios under Section 23 of IT Act 1961/2025: (1) Self-occupied property — annual value is nil (§23(2)); deductible: 30% standard deduction (not applicable on nil annual value, so zero); home loan interest under §24(b) up to ₹2L under old regime; NOTHING deductible under new (default) regime for self-occupied. (2) Let-out property — annual value = higher of actual rent or fair market rent/municipal valuation; deductible: 30% standard deduction, full home loan interest (no cap); if loss results, can set off up to ₹2L against salary/other income; excess loss carried forward 8 years. (3) Deemed let-out — individual owns more than 2 properties; the 3rd and beyond are 'deemed let-out' even if vacant; annual value = fair rent; same computation as let-out. Note: 2 properties can be self-occupied now (amended Finance Act 2019). Verify on the income-tax portal before filing.