Old vs New Tax Regime: Maximize Home Loan Benefits on Rented Property

• Shubham Singh from Delhi and his wife jointly purchased a second property with a home loan, intending to rent it out.
• Under the old tax regime, co-owners can claim a 30% standard deduction on rental income and set off home loan interest losses (up to Rs 2 lakh) against other income.
• Remaining losses can be carried forward for 8 years to be set off against future house property income.
• The new tax regime allows only a 30% deduction on rental income; loss set-off or carry-forward for home loan interest is not permitted.
• Section 80C deduction for principal repayment (up to Rs 1.5 lakh) is only available under the old tax regime, not the new one.

Why It Matters: The old tax regime offers significantly more benefits for home loan deductions on rented properties than the new regime.