Home Loan Tax Benefits: Self-Occupied vs. Let-Out Homes with Multiple Loans Explained
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Moneycontrol•16-01-2026, 07:37
Home Loan Tax Benefits: Self-Occupied vs. Let-Out Homes with Multiple Loans Explained
- •Tax laws do not limit the number of home loans for which deductions can be claimed, whether simultaneously or sequentially.
- •For a let-out second house, a 30% standard deduction on rental income and full home loan interest deduction are available under the old tax regime.
- •If the second house is self-occupied, the combined interest deduction for both properties is capped at Rs 2 lakh, as only two self-occupied houses are permitted.
- •Under the new tax regime, no interest deduction is allowed for self-occupied property; for let-out property, interest is deductible only up to taxable rental income.
- •Principal repayment for all home loans qualifies for Section 80C deduction (up to Rs 1.5 lakh) only under the old tax regime.
Why It Matters: Tax benefits for multiple home loans vary significantly based on property use (self-occupied/let-out) and chosen tax regime.
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