An individual borrows in tax year 2023-24 to construct a house, which is completed in tax year 2026-27 and then let out. Under section 22(1)(c) of the Income-tax Act, 2025, how is the interest…

Section 22(1)(c) of the Income-tax Act, 2025 allows interest payable on capital borrowed for the period before the tax year in which the property is acquired or constructed in five equal instalments, for that tax year and each of the four following years. It is not lost for want of a completed house, nor allowed in one sum in the year of completion; interest for the current year is allowed separately under section 22(1)(b).