Section 24(b) — Home Loan Interest Deduction

Definition

Section 24(b) of the Income Tax Act allows deduction on interest paid on home loans. For self-occupied property, the maximum deduction is Rs 2 lakh per financial year. For let-out property, there is no upper limit, and the entire interest amount is deductible. Interest on home loans taken for construction, purchase, repair, or reconstruction is eligible. This deduction is available under both Old and New Tax Regimes, making it one of the few deductions retained in the New Regime.