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.