Home Loan Deduction: New vs Old Tax Regime 2026

Home Loan Deduction – New vs Old Regime: The Ultimate 2026 Tax Guide for Indian Borrowers

1. Understanding the Two Tax Regimes in India (AY 2026-27)

India’s income tax landscape currently offers taxpayers two regimes to file their returns. Each has a fundamentally different philosophy on deductions, exemptions, and slab rates.

The Old Tax Regime

The Old Tax Regime (also called the Regular Regime) has been the backbone of Indian personal taxation for decades. It features higher tax slab rates but allows taxpayers to claim a wide array of deductions and exemptions — including all home-loan-related deductions under Chapter VI-A and Section 24(b) of the Income Tax Act, 1961.

Income Slab (INR)	Tax Rate (Old Regime)
Up to ₹2,50,000	Nil
₹2,50,001 – ₹5,00,000	5%
₹5,00,001 – ₹10,00,000	20%
Above ₹10,00,000	30%
Surcharge + Health & Edu. Cess	As applicable

The New Tax Regime (Default from AY 2024-25)

The New Tax Regime, introduced in Budget 2020 and made the default regime from AY 2024-25 (Finance Act 2023), offers significantly reduced slab rates but eliminates most deductions and exemptions. It was further sweetened in Budget 2024 (Finance Act 2024) applicable for AY 2025-26 and AY 2026-27.

Income Slab (INR)	Tax Rate (New Regime AY 2026-27)
Up to ₹3,00,000	Nil
₹3,00,001 – ₹7,00,000	5%
₹7,00,001 – ₹10,00,000	10%
₹10,00,001 – ₹12,00,000	15%
₹12,00,001 – ₹15,00,000	20%
Above ₹15,00,000	30%
Standard Deduction (Salaried)	₹75,000 (New Regime from AY 2025-26)
Rebate u/s 87A	Up to ₹25,000 (for income up to ₹7,00,000)

KEY CHANGE 2026: The New Regime is the default. If you do NOT specifically opt for the Old Regime before filing your ITR (or through your employer’s Form 12BB), you will automatically be assessed under the New Regime — and you will lose all home loan deductions. Always make a conscious choice.

2. Home Loan Deductions Available Under the Old Tax Regime

The Old Tax Regime provides three major deduction heads for home loan borrowers. Together, these can help you save lakhs of rupees in taxes every year.

A. Section 24(b) — Deduction on Home Loan Interest

Section 24(b) of the Income Tax Act allows a deduction on the interest component of your home loan EMI. This is available under both Self-Occupied and Let-Out property scenarios.

Property Type	Maximum Deduction Under Section 24(b)	Key Condition
Self-Occupied Property (SOP)	₹2,00,000 per year	Loan taken on or after 01/04/1999; construction/acquisition completed within 5 years
Let-Out / Deemed Let-Out Property	No upper limit — full interest deductible	Rental income must be declared; loss can be set off subject to ₹2L cap from AY 2018-19
Pre-construction interest	Deductible in 5 equal instalments	From the year in which construction is completed
Loan taken before 01/04/1999	Maximum ₹30,000 per year only	Older cap; rarely applicable in 2026

Practical Example — Section 24(b)

Mr. Ramesh has a self-occupied flat in Pune. His home loan interest for FY 2025-26 is ₹2,40,000. Under the Old Regime, he can claim only ₹2,00,000 as deduction (the maximum cap for SOP). At a 30% tax slab, his tax saving = ₹2,00,000 × 30% = ₹60,000 per year. The ₹40,000 excess interest above ₹2L is NOT deductible for SOP.

B. Section 80C — Deduction on Principal Repayment

Under Section 80C, the principal portion of your home loan EMI qualifies as a deduction. However, Section 80C has an overall combined ceiling of ₹1,50,000 per year across all eligible investments (PPF, ELSS, LIC premium, NSC, Tuition Fees, etc.).

Parameter	Details
Maximum Deduction	₹1,50,000 per year (combined 80C limit)
Who Can Claim	Individual / HUF borrowers; co-borrowers can claim proportionally
Property Condition	Property must not be sold within 5 years of possession; if sold, deductions are reversed
Type of Loan	Any scheduled bank, housing finance company, cooperative bank, NHB, HUDCO
Under-Construction Property	NOT allowed — only after possession / completion certificate
Stamp Duty & Registration	Also eligible under Section 80C (one-time, in the year of purchase)

Practical Example — Section 80C (Principal)

Ms. Priya pays an EMI of ₹35,000/month on her Mumbai flat. Of this, ₹15,000/month is principal repayment = ₹1,80,000/year. She can claim only ₹1,50,000 under 80C (the cap). If she has no other 80C investments, the full ₹1,50,000 is available. Tax saving at 30% slab = ₹1,50,000 × 30% = ₹45,000 per year.

C. Section 80EEA — Additional Interest Deduction for First-Time Buyers

Section 80EEA was introduced to encourage affordable housing purchases. It provides an additional interest deduction OVER AND ABOVE the ₹2,00,000 limit of Section 24(b).

Eligibility Criterion	Requirement
Loan Sanction Date	Between 01/04/2019 and 31/03/2022 (Note: extended deadline has lapsed — see 2026 update below)
Stamp Duty Value of Property	Must not exceed ₹45,00,000
First-Time Buyer	Taxpayer should not own any other residential property on the date of loan sanction
Maximum Deduction	₹1,50,000 per financial year (in addition to Section 24b)
Overlap with 80EE	Cannot claim both 80EE and 80EEA simultaneously

2026 UPDATE — Section 80EEA: The sunset date for new loan sanctions under 80EEA was 31/03/2022. No new loans sanctioned after this date are eligible. However, if your loan was sanctioned before 31/03/2022, you CONTINUE to enjoy this deduction every year as long as the loan is being repaid. Borrowers with pre-2022 affordable housing loans can still claim up to ₹3,50,000 total interest deduction (₹2L under 24b + ₹1.5L under 80EEA) in AY 2026-27.

D. Section 80EE — Additional Deduction for First-Time Buyers (Older Loans)

Section 80EE (now largely superseded by 80EEA) provided an additional ₹50,000 deduction for first-time buyers whose loans were sanctioned between 01/04/2016 and 31/03/2017 and property value was below ₹50 lakh with loan amount up to ₹35 lakh. If you borrowed in that window and are still repaying, you may continue to benefit.

3. Home Loan Deductions Under the New Tax Regime (AY 2026-27)

CRITICAL FACT: Under the New Tax Regime, virtually all home loan deductions are DISALLOWED. Specifically, deductions under Section 80C (principal), Section 24(b) for self-occupied property (interest), Section 80EEA, and Section 80EE are NOT available.

What IS Allowed Under New Regime for Home Loan?

Deduction / Benefit	New Regime Status	Details
Section 24(b) — Self-Occupied	❌ NOT ALLOWED	Interest on SOP home loan — fully disallowed
Section 80C — Principal	❌ NOT ALLOWED	Principal repayment deduction — disallowed
Section 80EEA — Extra Interest	❌ NOT ALLOWED	Affordable housing extra deduction — disallowed
Section 24(b) — Let-Out Property	✅ ALLOWED	Interest on let-out property is deductible — but loss cannot be set off against other heads (can only be carried forward for 8 years against future HP income)
Standard Deduction (Salaried)	✅ ₹75,000	Available from AY 2025-26 onwards — not directly related to home loan but helps overall
HRA Exemption	❌ NOT ALLOWED	Cannot claim HRA if opted for New Regime

Let-Out Property — The One Exception in New Regime

If your property is let-out (rented), the interest on the home loan for that property is deductible against rental income in the New Regime. However, a critical restriction applies: if the interest exceeds the rental income (resulting in a ‘loss from house property’), that loss CANNOT be set off against your salary or other income in the same year under the New Regime. It can only be carried forward for up to 8 assessment years to be set off against future House Property income.

4. Side-by-Side Comparison — Old Regime vs New Regime (Home Loan)

Parameter	Old Tax Regime	New Tax Regime
Section 24(b) — SOP Interest	✅ Up to ₹2,00,000	❌ Not allowed
Section 80C — Principal	✅ Up to ₹1,50,000	❌ Not allowed
Section 80EEA — Extra Interest	✅ Up to ₹1,50,000 (if eligible)	❌ Not allowed
Section 24(b) — Let-Out Interest	✅ Full interest (no cap)	✅ Allowed but set-off restricted
Loss from House Property Set-Off	✅ Up to ₹2,00,000 against salary	❌ No set-off allowed
HRA Exemption	✅ Allowed	❌ Not allowed
Standard Deduction	₹50,000 (salaried)	₹75,000 (salaried, from AY 2025-26)
Total Max Home Loan Benefit	Up to ₹5,00,000 (SOP + 80C + 80EEA)	Nil for SOP; Limited for LOP
Complexity	Higher (multiple forms, proofs)	Lower (simpler filing)
Best Suited For	High deduction claimers (₹3L+ deductions)	Lower income or few deductions

5. Tax Calculation Examples — Which Regime Saves More?

The best regime depends on your income level, loan amount, interest rate, and other deductions. Below are detailed worked examples for typical Indian borrowers in AY 2026-27.

Example 1 — Salaried Employee, Income ₹12,00,000

Profile: Mr. Ankit, Mumbai | Annual Gross Income: ₹12,00,000 | Home Loan: ₹50,00,000 @ 8.5% p.a. | Annual Interest: ₹4,25,000 | Annual Principal: ₹80,000 | PPF Investment: ₹50,000 OLD REGIME CALCULATION: Gross Income: ₹12,00,000 Less: Standard Deduction (50K): ₹12,00,000 – ₹50,000 = ₹11,50,000 Less: Section 24(b) Interest: ₹11,50,000 – ₹2,00,000 = ₹9,50,000 Less: Section 80C (PPF+Principal)₹9,50,000 – ₹1,30,000 = ₹8,20,000 Taxable Income: ₹8,20,000 Tax (approx): ₹75,400 + 4% cess = ₹78,416 NEW REGIME CALCULATION: Gross Income: ₹12,00,000 Less: Standard Deduction (75K): ₹12,00,000 – ₹75,000 = ₹11,25,000 No other deductions allowed Taxable Income: ₹11,25,000 Tax (approx): ₹90,000 + 4% cess = ₹93,600 SAVING UNDER OLD REGIME: ₹93,600 – ₹78,416 = ₹15,184 MORE tax saved in Old Regime

Example 2 — Salaried Employee, Income ₹20,00,000 (Higher Income)

Profile: Ms. Sunita, Bangalore | Annual Gross Income: ₹20,00,000 | Home Loan Interest: ₹2,40,000 | Principal: ₹60,000 | 80C Investments: ₹90,000 (Total 80C = ₹1,50,000) OLD REGIME CALCULATION: Gross Income: ₹20,00,000 Less: Standard Deduction: ₹50,000 Less: Section 24(b): ₹2,00,000 Less: Section 80C: ₹1,50,000 Taxable Income: ₹16,00,000 Tax (approx at 30%): ₹3,12,000 + 4% cess = ₹3,24,480 NEW REGIME CALCULATION: Gross Income: ₹20,00,000 Less: Standard Deduction: ₹75,000 Taxable Income: ₹19,25,000 Tax (approx): ₹3,28,750 + 4% cess = ₹3,41,900 SAVING UNDER OLD REGIME: ₹3,41,900 – ₹3,24,480 = ₹17,420 MORE saved in Old Regime

Example 3 — When New Regime Wins (Lower Income, Small Loan)

Profile: Mr. Vijay, Hyderabad | Annual Gross Income: ₹8,00,000 | Home Loan Interest: ₹80,000 (small loan) | Principal: ₹40,000 | Other 80C: ₹30,000 (Total 80C = ₹70,000) OLD REGIME: Gross Income: ₹8,00,000 Less: Standard Deduction: ₹50,000 Less: Section 24(b): ₹80,000 Less: Section 80C: ₹70,000 Taxable Income: ₹6,00,000 Tax: ₹25,000 + 4% cess = ₹26,000 NEW REGIME: Gross Income: ₹8,00,000 Less: Standard Deduction: ₹75,000 Taxable Income: ₹7,25,000 Tax: Rebate u/s 87A not applicable (>₹7L) Tax: ₹25,000 + 10% on ₹25,000 = ₹27,500 + 4% cess = ₹28,600 CONCLUSION: Old Regime still marginally better here — but if deductions were even fewer, New Regime can win. Always calculate both scenarios.

6. Joint Home Loan — Tax Benefits for Co-Borrowers

One of the most underutilised strategies for maximising home loan tax benefits is taking a joint home loan. When two people (typically spouses) are both borrowers and co-owners of the property, EACH can claim the full deductions up to the applicable limits.

Benefits of Joint Home Loan

Each co-borrower can claim Section 24(b) deduction up to ₹2,00,000 — total ₹4,00,000 for a couple
Each co-borrower can claim Section 80C principal deduction up to ₹1,50,000 — total ₹3,00,000
Each co-borrower eligible for Section 80EEA (if conditions met) — total additional ₹3,00,000
Combined maximum tax benefit: up to ₹7,00,000 in deductions for a joint borrower couple

Conditions for Joint Claim

Both applicants must be co-owners of the property (not just co-borrowers)
The deduction must be in proportion to their share in the loan/property
Each co-borrower must be individually earning and filing returns under the Old Regime
Both must be on the loan agreement as borrowers

Smart Strategy: If one spouse is in the 30% tax bracket and the other is in the 20% bracket, structure the loan so the higher-earner has a proportionally larger share in ownership to maximise the deduction at the higher tax rate.

7. Under-Construction Property — Special Tax Rules

Many home buyers take loans for under-construction properties. The tax rules for such properties are specific and often misunderstood.

Interest During Construction Period

Interest paid during the period of construction (pre-EMI interest or pre-possession interest) is NOT deductible in the year of payment. It is accumulated and then deducted in five equal instalments starting from the year in which construction is completed/possession is received.

Example: Mr. Kartik’s under-construction flat has a loan. He pays pre-EMI interest of ₹3,60,000 over 3 years before possession in April 2025. This ₹3,60,000 is deductible in 5 equal instalments of ₹72,000/year from FY 2025-26 onwards. This pre-construction interest is SEPARATE from the post-possession interest (which is subject to the ₹2,00,000 cap). So in FY 2025-26, his deduction = ₹72,000 (pre-construction) + up to ₹1,28,000 (post-construction interest, within ₹2L combined cap).

Section 80C — Under-Construction Property

Principal repayment under Section 80C is NOT available for under-construction properties. The deduction begins only after the year of completion/possession of the house. Stamp duty and registration fees paid in the year of purchase are, however, eligible under Section 80C regardless of construction status.

GST and Under-Construction Deduction

The GST component paid on under-construction property (currently 5% for regular housing, 1% for affordable housing without ITC) is NOT eligible as a separate deduction under income tax. Only the principal and interest components of the home loan are considered.

8. Self-Occupied vs Let-Out Property — Detailed Tax Analysis

Self-Occupied Property (SOP)

A property is treated as self-occupied when the taxpayer or their family occupies it for their own residence and it is not let out at any time during the year. Key tax rules:

Annual Value of SOP is taken as NIL (no rental income to declare)
Interest deduction capped at ₹2,00,000 under Old Regime; Nil under New Regime
As per 2019 amendment, taxpayers can declare up to 2 properties as self-occupied (earlier only 1 was allowed)
If you have 2 SOPs, the ₹2,00,000 interest cap applies to each separately

Let-Out Property (LOP)

A property that is rented out (or deemed to be rented) has different tax treatment:

Tax Head	Old Regime	New Regime
Gross Annual Value	Actual Rent / Fair Market Rent (whichever higher)	Same
Municipal Taxes	Deductible from GAV	Deductible
Standard Deduction (30%)	30% of Net Annual Value (flat deduction)	Same
Interest on Loan	Full amount — no cap	Allowed but with restrictions
Loss Set-Off	Up to ₹2L against salary/other income	Not allowed — carry forward only
Carry Forward of Loss	Up to 8 assessment years	Up to 8 assessment years

9. How to Decide — Old Regime or New Regime with a Home Loan?

This is the most critical decision every home loan borrower must make before filing their ITR each year. Here is a structured decision framework:

Step 1 — Calculate Your Total Deductions Under Old Regime

Add Section 24(b) interest (capped at ₹2,00,000 for SOP)
Add Section 80C principal + other 80C investments (capped at ₹1,50,000)
Add Section 80EEA if eligible (₹1,50,000)
Add Section 80D (Health Insurance), 80G (Donations), HRA, LTA if applicable
Add Standard Deduction ₹50,000

Step 2 — Calculate Tax Under Both Regimes

Old Regime Tax = Tax on (Gross Income – Total Deductions) using old slabs
New Regime Tax = Tax on (Gross Income – ₹75,000 Standard Deduction) using new slabs

Step 3 — Apply the Crossover Rule

THUMB RULE 2026: If your total deductions (excluding standard deduction) under the Old Regime exceed ₹3,75,000, you are almost certainly better off in the Old Regime. If your total deductions are less than ₹2,00,000, the New Regime is likely better. In the ₹2L–₹3.75L range, calculate both and compare.

Decision Matrix — Quick Reference

Total Deductions (Old Regime)	Income Level	Recommended Regime
Less than ₹2,00,000	Any	New Tax Regime
₹2,00,000 – ₹3,00,000	Up to ₹10L	New Regime likely better — calculate
₹2,00,000 – ₹3,00,000	Above ₹10L	Old Regime likely better — calculate
₹3,00,000 – ₹5,00,000	Any	Old Tax Regime
Above ₹5,00,000	Any	Old Tax Regime — strongly recommended

10. Documents Required to Claim Home Loan Deductions

Maintaining proper documentation is essential when claiming home loan deductions under the Old Regime. Here is a comprehensive list:

For Section 24(b) — Interest Deduction

Home Loan Interest Certificate from the bank/NBFC for the relevant financial year
Loan sanction letter (required for first-time claim)
Completion/Occupation Certificate (to prove construction is complete for SOP claims)
Possession letter (for new properties)

For Section 80C — Principal Deduction

Home Loan Principal Repayment Certificate or Bank Statement showing EMI breakup
Stamp Duty and Registration receipts (for the year of purchase)
Property ownership proof / Sale Deed

For Section 80EEA — Additional Interest Deduction

Loan Sanction Letter dated between 01/04/2019 and 31/03/2022
Stamp Duty Valuation Certificate showing property value ≤ ₹45,00,000
Declaration that no other residential property was owned on loan sanction date

For Joint Loan Claims

Sale Deed showing ownership percentage of each co-owner
Individual Interest Certificates in each borrower’s name
Each co-borrower to submit Form 12BB to their respective employers separately

11. Budget 2025–26 Updates Affecting Home Loan Deductions (AY 2026-27)

The Union Budget 2025 (Finance Act 2025) brought several changes relevant to home loan taxpayers:

Key Budget 2025 Announcements

New Tax Regime Standard Deduction maintained at ₹75,000 for salaried individuals (no change from Finance Act 2024)
No new extension of Section 80EEA sunset date — loans must have been sanctioned before 31/03/2022
The income tax rebate under Section 87A for New Regime continues at ₹25,000 (for income up to ₹7,00,000)
New Regime remains the default — taxpayers must actively opt out to claim home loan deductions
TDS on rent threshold increased to ₹6,00,000/year (from ₹2,40,000) — relevant for let-out property holders
No reinstatement of home loan deductions in the New Regime — a key expectation from the real estate sector that was NOT met in Budget 2025
The Finance Minister reiterated the government’s intent to simplify the New Regime further in coming years, potentially reducing the attractiveness of the Old Regime further

IMPORTANT EXPECTATION vs REALITY 2025: The real estate and banking sectors had lobbied for restoration of Section 24(b) deduction under the New Regime. This was NOT granted in Budget 2025. The government’s stated position is that the lower tax rates in the New Regime compensate sufficiently for the removal of deductions. Home loan borrowers must continue to actively opt for the Old Regime to claim interest and principal deductions.

12. Home Loan Deduction for NRIs — Special Rules

Non-Resident Indians (NRIs) who have taken home loans for Indian residential properties are also eligible for home loan deductions when filing their Indian income tax returns, subject to certain conditions.

NRI Home Loan Tax Rules

NRIs can claim Section 24(b) interest deduction (up to ₹2,00,000 for SOP under Old Regime)
Section 80C principal deduction is available if the NRI has Indian income on which tax is payable
Section 80EEA is available to NRIs if all other conditions are met (loan sanctioned before 31/03/2022)
NRIs are mandatorily taxed at flat rates on capital gains — consult the applicable DTAA (Double Tax Avoidance Agreement) for relief
TDS is deducted at 31.2% on interest earned by NRIs from India — NRIs should furnish Form 15CA/15CB for remittances
NRIs should file ITR-2 or ITR-3 (as applicable) to claim these deductions

13. Common Mistakes to Avoid When Claiming Home Loan Deductions

Mistake 1 — Forgetting to Submit Form 12BB to Employer

Salaried employees must submit Form 12BB (declaration of investments/deductions) to their employer to have the home loan benefit reflected in their monthly TDS calculation. Failure to do so results in excess TDS deduction, which is then refunded only after filing the return — blocking liquidity unnecessarily.

Mistake 2 — Claiming Section 80C on Pre-Possession Property

Several taxpayers erroneously claim principal repayment deduction under Section 80C even before possession/completion certificate. This is not allowed and can result in a tax notice during scrutiny assessment.

Mistake 3 — Not Claiming Pre-Construction Interest

Many taxpayers are unaware of the pre-construction interest benefit. They end up losing this deduction (claimable in 5 equal instalments post-possession) by not maintaining records of pre-EMI payments made during the construction phase.

Mistake 4 — Both Spouses Claiming Full ₹2,00,000 Without Proportionate Ownership

In a joint loan, each co-borrower can claim deductions only in proportion to their ownership share. If ownership is 50-50, each can claim 50% of the actual interest paid (subject to the ₹2L cap). Claiming full ₹2L each without proportionate ownership is incorrect and can attract scrutiny.

Mistake 5 — Switching Regimes Without Recalculating

From AY 2024-25, salaried individuals can switch between regimes every year. However, business owners can exercise the option to switch to Old Regime only once after which they cannot switch back. Failing to recalculate the tax impact before switching can result in higher tax outgo.

14. Frequently Asked Questions (FAQs)

Q1. Can I claim both Section 24(b) and Section 80C on the same home loan?

Yes, absolutely. Under the Old Regime, you can claim interest under Section 24(b) (up to ₹2,00,000 for SOP) and principal under Section 80C (up to ₹1,50,000) simultaneously on the same home loan. These are separate provisions with separate limits.

Q2. Can I switch from New Regime to Old Regime just because I bought a house?

Yes, if you are a salaried individual, you can switch to the Old Regime every assessment year based on which regime is more beneficial. The switch must be declared to your employer via Form 12BB at the start of the financial year, or you can choose the regime at the time of filing your ITR. Business owners have more restrictions on switching.

Q3. I have two home loans — can I claim deductions on both?

Yes. Under Section 24(b), you can claim interest deductions on multiple home loans. However, if both properties are self-occupied, the combined deduction is capped at ₹2,00,000. If one is let out, the interest on the let-out property is fully deductible (no cap), and the SOP interest is capped separately at ₹2,00,000.

Q4. My loan is from my parents — can I claim deduction?

For Section 24(b) interest, you CAN claim a deduction on interest paid to any person (including parents), provided the loan was taken for purchase/construction of house property and you have a written loan agreement and proof of interest payment. However, Section 80C is ONLY available for loans from specified financial institutions (banks, NBFCs, etc.) — informal family loans do NOT qualify for principal deduction.

Q5. What happens if I sell my house within 5 years of possession?

If you sell the property within 5 years of the end of the year in which possession was obtained, all Section 80C deductions claimed on principal repayment in previous years are reversed — they are added back to your income in the year of sale and taxed accordingly. The Section 24(b) interest already claimed is NOT reversed.

15. Key Takeaways — Action Plan for Home Loan Borrowers in 2026

For most home loan borrowers with a loan above ₹25 lakh and annual interest exceeding ₹1,50,000, the Old Tax Regime continues to offer significantly better tax savings in 2026. The New Regime’s lower slab rates are beneficial mainly for those with few deductions, smaller loans, or very high incomes where the slab rate advantage outweighs the deduction loss.

Your 2026 Action Checklist

Obtain your Home Loan Interest Certificate from your bank for FY 2025-26 (AY 2026-27)
Calculate your total deductions under the Old Regime (24b + 80C + 80EEA + 80D + HRA etc.)
Calculate tax liability under both regimes using the current slab rates
Choose the regime that gives you lower tax — submit Form 12BB to employer if opting Old Regime
If you have a joint loan, ensure both co-owners are filing under Old Regime for maximum benefit
Maintain all original documents — loan certificates, property documents, pre-EMI receipts
If under-construction, track pre-construction interest paid each year for future deduction
File your ITR on time (31st July 2026 for non-audit cases) to avoid loss of carry-forward benefits
Consult a CA or tax advisor for personalised advice — especially if you have multiple properties or NRI status