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An individual borrowed to build a house in 2023, and construction is completed in December 2026. Under section 22(1)(c) of the Income-tax Act, 2025, interest for which period is spread over five…

Question and options

An individual borrowed to build a house in 2023, and construction is completed in December 2026. Under section 22(1)(c) of the Income-tax Act, 2025, interest for which period is spread over five instalments?

  1. From the date of borrowing to 31 March 2026

  2. From the date of borrowing to 31 March 2027

  3. From 1 April 2026 to December 2026

  4. From the date of borrowing to December 2026

Answer and explanation

Correct answer: A - From the date of borrowing to 31 March 2026

Section 22(1)(c) of the Income-tax Act, 2025 spreads the interest for the period before the tax year in which the property is constructed. Completion in December 2026 falls in tax year 2026-27, so the pre-construction period ends on 31 March 2026; interest from 1 April 2026 is deducted in the ordinary way for that year.

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