New vs Old Tax Regime: Maximizing Home Loan Benefits on Let-Out Property

• Jointly owned, let-out properties allow co-owners to claim tax benefits based on ownership and loan repayment shares.
• Under the old tax regime, a set-off of up to Rs 2 lakh for 'Income from house property' loss due to interest payment is allowed against other income.
• The old regime also permits carrying forward unabsorbed loss for eight subsequent years and claiming Section 80C deduction for principal repayment.
• The new tax regime only allows interest claims up to the share of rental income (after 30% standard deduction), with no loss set-off or carry forward.
• Section 80C deduction for principal repayment is not available under the new tax regime.

Why It Matters: Choosing between new and old tax regimes significantly impacts home loan tax benefits for let-out properties.