{"id":7863,"date":"2025-07-15T13:23:58","date_gmt":"2025-07-15T13:23:58","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7863"},"modified":"2025-07-15T13:23:59","modified_gmt":"2025-07-15T13:23:59","slug":"section-24","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/section-24\/","title":{"rendered":"Section 24"},"content":{"rendered":"<p><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-24\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 24<\/a><\/strong> of the <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax-act\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax Act<\/a> lets you <strong>deduct interest paid on a home loa<\/strong>n from your <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>tax<\/a>able income. It applies if you own a house (self-occupied, rented, or vacant).<\/p>\n\n\n\n<h2 id=\"key-benefits-under-section-24\" class=\"wp-block-heading\">Key Benefits Under Section 24<\/h2>\n\n\n\n<p>There are <strong>two main parts<\/strong> to Section 24:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/standard-deduction\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Standard Deduction<\/a> [24(a)]<\/strong>\n<ul class=\"wp-block-list\">\n<li>You get <strong>30% flat deduction<\/strong> from your <strong>Net Annual Value<\/strong> (<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nav\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>NAV<\/a>) of the property.<\/li>\n\n\n\n<li>It covers maintenance, repairs, etc.<\/li>\n\n\n\n<li>Applies only if the house is <strong>rented<\/strong> or <strong>deemed to be let out<\/strong>.<\/li>\n\n\n\n<li><strong>Not applicable<\/strong> for self-occupied houses (NAV = &#x20B9;0).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Interest on Home Loan [24(b)]<\/strong>\n<ul class=\"wp-block-list\">\n<li>You can <strong>deduct interest<\/strong> paid on home loan from your total income.<\/li>\n\n\n\n<li>Maximum deduction depends on <strong>property type<\/strong> and <strong>usage<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<h2 id=\"deduction-limits\" class=\"wp-block-heading\">Deduction Limits<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Property Type<\/th><th>Deduction Limit<\/th><th>Conditions<\/th><\/tr><\/thead><tbody><tr><td><strong>Self-Occupied<\/strong><\/td><td>&#x20B9;2 lakh\/year<\/td><td>Loan must be taken <strong>for purchase\/construction<\/strong>, and completed within <strong>5 years<\/strong><\/td><\/tr><tr><td><strong>Let-Out Property<\/strong><\/td><td>No upper limit<\/td><td>Full interest on loan allowed<\/td><\/tr><tr><td><strong>Under Construction<\/strong><\/td><td>&#x20B9;2 lakh (post-possession)<\/td><td>Interest during construction can be claimed in <strong>5 equal parts<\/strong> after possession<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"simple-example\" class=\"wp-block-heading\">Simple Example<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You own a <strong>self-occupied flat<\/strong> and pay <strong>&#x20B9;2.5 lakh\/year<\/strong> as loan interest.<\/li>\n\n\n\n<li>You can claim <strong>&#x20B9;2 lakh<\/strong> as deduction under Section 24(b).<\/li>\n\n\n\n<li>The remaining &#x20B9;50,000 isn&#x2019;t allowed (unless property is rented).<\/li>\n<\/ul>\n\n\n\n<h2 id=\"why-it-matters\" class=\"wp-block-heading\">Why It Matters<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reduces your <strong>taxable income<\/strong> significantly if you&#x2019;re paying home loan interest.<\/li>\n\n\n\n<li>Especially helpful for new home buyers or those with multiple properties.<\/li>\n\n\n\n<li>Works <strong>alongside <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-80c\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 80C<\/a><\/strong>, which gives separate deduction for <strong>principal repayment<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"quick-summary\" class=\"wp-block-heading\">Quick Summary<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Section<\/th><th>Covers<\/th><th>Max Deduction<\/th><th>Applies To<\/th><\/tr><\/thead><tbody><tr><td>24(a)<\/td><td>30% of Net Annual Value (NAV)<\/td><td>No limit<\/td><td>Only on rented property<\/td><\/tr><tr><td>24(b)<\/td><td>Interest on home loan<\/td><td>&#x20B9;2 lakh (self-occupied)<\/td><td>Self-occupied or let-out<\/td><\/tr><tr><td>Pre-construction interest<\/td><td>Spread over 5 years<\/td><td>Included in &#x20B9;2 lakh limit<\/td><td>After possession only<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Section 24 of the <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax<\/a> Act lets you deduct interest paid on a home loan from your taxable income. It applies if you own a house (self-occupied, rented, or vacant). Key Benefits Under Section 24 There are two main parts to Section 24: Deduction Limits Property Type Deduction Limit Conditions Self-Occupied &#x20B9;2 lakh\/year Loan [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7863","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7863\/revisions"}],"predecessor-version":[{"id":7864,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7863\/revisions\/7864"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}