Section 24(b) Home Loan Interest Calculator
Work out your home-loan interest deduction live — self-occupied ₹2L cap or let-out with net annual value, 30% standard deduction, pre-construction instalments and tax saved.
Applicable for FY 2026-27 (AY 2027-28) and FY 2027-28.
House-property computation
Claim every rupee of home-loan interest — CA-filed ITR
We compute your house-property income, set off the loss correctly and file your return.
Disclaimer: Indicative estimate for a resident individual. Actual deduction depends on possession year, ownership share and completion status. Rates per Income-tax Act, 1961.
Section 24(b) — home loan interest at a glance
Section 24(b) of the Income-tax Act lets you deduct the interest you pay on a home loan taken for the purchase, construction, repair or reconstruction of a house. The amount you can claim depends on whether the property is self-occupied or let-out.
Self-occupied vs let-out
The rules differ sharply. A self-occupied property has a hard ₹2 lakh cap on interest. A let-out property allows the full interest, but any resulting house-property loss can only be set off against other income up to ₹2 lakh a year — the excess carries forward for 8 years.
| Annual value | Nil |
| Interest deduction u/s 24(b) | Actual, capped ₹2,00,000 |
| Pre-construction interest | 1/5th, within the ₹2L cap |
| Standard deduction (24a) | Not applicable |
| Regime | Old regime only |
| Gross annual value | Rent received |
| Less: Municipal taxes | = Net Annual Value |
| Less: Standard deduction | 30% of NAV |
| Less: Interest u/s 24(b) | Full amount, no cap |
| Loss set-off vs other income | Max ₹2,00,000/yr |
Worked example
Three quick scenarios show how the deduction and tax saved (@30%) are computed. Enter your own numbers above to see your figures live.
Key terms explained
Net Annual Value (NAV)
For a let-out property, NAV = gross rent − municipal taxes actually paid by the owner. It is the starting point for computing income from house property.
30% standard deduction
Section 24(a) allows a flat 30% of NAV as a standard deduction for repairs and upkeep of a let-out property — no bills required. It does not apply to a self-occupied house.
Pre-construction interest
Interest paid before the year of completion is aggregated and claimed in 5 equal instalments starting from the year construction is completed, subject to the same overall caps.
Loss set-off & carry forward
A house-property loss can be set off against other income only up to ₹2,00,000 per year. Any excess is carried forward for 8 years against future house-property income.
How much home loan interest can I claim?
Up to ₹2,00,000 a year for a self-occupied house. For a let-out property the full interest is deductible in computing house property income, though the loss that can be set off against other heads is capped at ₹2,00,000.
Is the ₹2 lakh limit per person or per property?
Per person. Where a property is jointly owned and both are co-borrowers contributing to repayment, each can claim up to ₹2,00,000 in proportion to their share.
What is the treatment of pre-construction interest?
Interest for the period from borrowing until the end of the financial year before completion is allowed in five equal instalments beginning in the year of completion, within the same overall limit for a self-occupied house.
Does the ₹2 lakh limit reduce if construction is delayed?
The limit for a self-occupied house applies where the loan was taken for acquisition or construction and the construction is completed within five years of the end of the financial year in which the loan was taken. If it takes longer, the deduction drops to ₹30,000.
Is section 24(b) available under the new regime?
Only for a let-out property. For a self-occupied house the deduction is not available under the new regime, which is one of the most significant differences between the two regimes for home owners.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.