Every rupee of eligible deduction reduces the income on which you pay tax. Section 24(b) of the Income-tax Act, 1961 is one such provision, and using it correctly can meaningfully lower your tax bill.

This guide explains Section 24(b) in plain language — the deduction limit, who can claim it, what is covered, the documents to keep, and the exact steps to claim it in your ITR.

What is 24(b)?

Section 24(b) allows a deduction for interest paid on a housing loan. For a self-occupied property the cap is ₹2,00,000 a year; for a let-out property the entire interest can be set off (subject to the ₹2 lakh house-property loss set-off cap).

How much can you claim?

Up to ₹2,00,000 per year for a self-occupied house; full interest for a let-out house.

Who is eligible

  • Property owners servicing a housing loan.
  • For the ₹2 lakh self-occupied cap, the loan must be for purchase/construction and construction completed within 5 years.

What is covered

  • Interest component of home loan EMIs.

Documents and proof to keep

  • Home loan interest certificate from the lender.

Retain these documents even though they are not attached to the return — the tax department can ask for them during processing or assessment.

Self-occupied cap

Your annual home loan interest is ₹2,60,000 on a self-occupied flat. You can claim ₹2,00,000 under 24(b); the balance ₹60,000 is not deductible.

Points to remember

  • Principal repayment is claimed separately under 80C.
  • The interest deduction on a self-occupied house is broadly not available under the new regime; let-out property interest treatment differs.

How to claim it in your ITR

  1. Gather proof. Collect the certificates, receipts or statements listed above for the financial year.
  2. Choose the right regime. The deduction applies under both regimes, so pick whichever regime gives you a lower overall tax.
  3. Enter the amount. Report the eligible amount against Section 24(b) in the deductions schedule of your ITR on the income-tax e-filing portal.
  4. Verify and file. Cross-check against Form 26AS / AIS, then submit and e-verify the return within the prescribed time.

Frequently asked questions

Can I claim both 80C and 24(b) on a home loan?

Yes — principal under 80C (within ₹1.5 lakh) and interest under 24(b) (up to ₹2 lakh for self-occupied).