Section 24: Home Loan Interest Deduction#
What is Section 24?#
Section 24 allows deduction for interest paid on borrowed capital for acquiring or constructing a house property.
Deduction Limits#
| Property Type | Deduction |
|---|---|
| Self-occupied property | ₹2,00,000 |
| Let-out property | Full interest |
| Under construction | Interest for construction period |
Conditions for Deduction#
- Property should be in India
- Loan should be from recognized institution
- Property should not be sold within 5 years
- Should have certificate of interest
Interest from Co-borrower#
- Both co-owners can claim deduction
- Each can claim up to ₹2 lakh
- Based on ownership share
Pre-Construction Interest#
- Interest during construction period
- Allowed in 5 equal installments
- From year of completion
Points to Remember#
- Cannot claim if property is vacant
- Cannot claim for commercial property (as deduction)
- Should have loan from bank/housing finance company
- Certificate from lender required