The document circulated by your company is based on the recent circular issued by the CBDT on 5 December 2017. As per the recent amendments:
1. Interest on Loan:
The limit of Rs. 2 lakh is only on self-occupied properties. There is no limit on the interest on loan paid on let-out properties. This is as per section 24 of the Income-tax Act, 1961 a read with section 23(2) of the Act.
2. Limit on set-off of losses:
However, though the interest on let-out property is not capped at Rs. 2 lakhs, they have capped the amount of loss that can be set off against income earned from other heads. Relevant sections are section 71 and 71B of the Act.
For example, say your rental income is Rs. 9 lakhs and the interest paid is Rs. 5 lakhs. You will get deduction of the entire interest paid and the differential amount will be taxed as income from house property.
Alternatively, if the rental income is Rs. 3 lakhs and the interest paid is Rs. 7 lakhs, the net income from house property will be a loss of Rs. 4 lakhs. Suppose you have salary income of Rs. 10 lakhs, you can reduce the entire Rs. 4 lakhs loss against it, you can deduct only Rs. 2 lakhs and your net taxable income will be Rs. 8 lakhs (10 lakhs - 2 lakhs).
Trust the above clarifies.
M.Com., CA, LL.B