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

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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.

AI Summary

No Limit on Interest Deduction for Rented Homes, Rs. 1,50,000 Cap for Self-Occupied Properties Under Section 24(b). A query was raised regarding the maximum interest eligible for tax exemption on a residential house loan if the property is rented out. The response clarified that according to Section 24(b) of the Income Tax Act, there is no upper limit on the interest deduction for let-out properties. In contrast, a limit of Rs. 1,50,000 is applicable for self-occupied properties as per the second proviso of the same section.