Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Nil value, but interest still helps
For a house you live in, the annual value is taken as nil — there is no tax on imaginary rent. But you can still claim home-loan interest up to ₹2 lakh under Section 24(b) in the old regime, which produces a house-property loss of up to ₹2 lakh that you set off against salary or other income.
Two self-occupied houses allowed
You may treat up to two houses as self-occupied (both nil value). If you own more, the additional ones are treated as deemed let-out and taxed on notional rent. The ₹2 lakh interest cap applies in aggregate across your self-occupied houses. Confirm the current rules per the Finance Act.
A worked example
Example: you live in your own flat with ₹2.2 lakh of home-loan interest. The annual value is nil, you deduct ₹2 lakh (the cap), creating a ₹2 lakh loss that reduces your taxable salary — a real saving in the old regime. In the new regime, no interest deduction is allowed on a self-occupied house. Our team can fit it into your return.