Tax Deductions on Home Loan Interest for Let-Out Property (New Regime)

In the new tax regime, interest paid on a home loan for a let-out property can be deducted against rental income. If the interest paid (e.g., 7 lakh) exceeds the rental income (e.g., 3 lakh), the deduction is limited to the rental income, resulting in zero taxable income from the property. The remaining interest can be added to the property's cost for future capital gains calculation.