Maximum exemption applicable is 2.5L?

Need help with maximum exemption possible here:

Individual is a private sector employee, in 30% tax bracket, he gets HRA. He takes a home loan of 29 lakh and value of the property is 40 lakh. Property he will rent it. Employee is already utilizing his 80C exemption as well.

So is the maximum exemption he can apply for is 2.5L?

Hi

If it is Self Occupied property he can claim exemption for Interest upto 2 lacs and if it is let out he can claim full interest as exemption

Most possibly will either rent it or his parents might stay there.

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