LIC AAO Model Paper 8

The maximum tax deduction allowed under Section 24 of a self-occupied property is subject to a maximum limit of Rs. 2 Lakhs (increased in Budget 2014 from 1.5 Lakhs to Rs. 2 Lakhs). In case the property for which the Home Loan has been taken is not self-occupied, no maximum limit has been prescribed in this case. The tax deduction of Interest on Home Loan under Section 24 is deductible on payable basis, i.e. on accrual basis.