Section 24 of the Income Tax Act, 1961, allows individual taxpayers in India to claim a deduction on the interest paid on home loans. This deduction is applicable when the loan is taken for purchasing, constructing, or renovating a residential property. Under this section, the maximum deduction allowed on interest paid is up to ₹2 lakh per financial year for a self-occupied property. For properties rented out or deemed to be let out, there is no upper limit on the interest deduction; however, the overall loss that can be claimed is capped at ₹2 lakh.
This provision helps taxpayers reduce their taxable income, easing the financial burden of home loan repayments. Claiming this deduction correctly during income tax filing is essential for compliance and maximising tax benefits. For small business owners and first-time entrepreneurs, understanding Section 24 can assist in better financial planning and managing their personal and business tax liabilities.
To explore detailed guidance on income tax benefits, including Section 24 and other related provisions, visit the comprehensive resources at FinTax24 Income Tax Solutions.