What is the maximum of interest eligible if the house is let out

[Guest]

Intest on funds borrowed on construction of Residential house- what is the maximum amount allowable as exemption if the house is let out on rental basis.

[Surender Gupta]

There is no limit. See section 24(b) of the Income Tax. Limit of Rs. 1,50,000 has been prescribed for self occupied house property under the second proviso of this section but there is no upper limit of let out property.

AI Summary

Interest deduction for let-out property has no statutory cap; self-occupied limit does not apply under income tax provision. Interest on borrowed funds for construction of a residential house that is let out is deductible with no upper limit; the second proviso to section 24(b) prescribes a limit only for self-occupied houses and does not impose any cap on interest deduction for let-out property.