# Maximum exemption applicable is 2.5L?

**URL:** <https://community.greythr.com/t/maximum-exemption-applicable-is-2-5l/3820>\
**Category:** HR\
**Tags:** employeebenefits, income-tax-savings\
**Created:** [January 10, 2022, 6:39am UTC](https://community.greythr.com/t/maximum-exemption-applicable-is-2-5l/3820 "2022-01-10T06:39:46Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Prabha](https://avatars.discourse-cdn.com/v4/letter/p/f9ae1b/32.png) [@Prabha](https://community.greythr.com/u/Prabha)\
**Post date:** [January 10, 2022, 6:39am UTC](https://community.greythr.com/t/maximum-exemption-applicable-is-2-5l/3820/1 "2022-01-10T06:39:46Z")

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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?

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**Author:** ![C0025](https://avatars.discourse-cdn.com/v4/letter/c/ecccb3/32.png) [@C0025](https://community.greythr.com/u/C0025)\
**Post date:** [January 10, 2022, 8:34am UTC](https://community.greythr.com/t/maximum-exemption-applicable-is-2-5l/3820/2 "2022-01-10T08:34:09Z")

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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

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**Author:** ![Prabha](https://avatars.discourse-cdn.com/v4/letter/p/f9ae1b/32.png) [@Prabha](https://community.greythr.com/u/Prabha)\
**Post date:** [January 10, 2022, 9:08am UTC](https://community.greythr.com/t/maximum-exemption-applicable-is-2-5l/3820/3 "2022-01-10T09:08:18Z")

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