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For an individual opting out of the default regime, the higher ceiling of ₹2,00,000 for interest on a self-occupied house applies only if acquisition or construction is completed within what time…

Question and options

For an individual opting out of the default regime, the higher ceiling of ₹2,00,000 for interest on a self-occupied house applies only if acquisition or construction is completed within what time under section 22(2)(a) of the Income-tax Act, 2025?

  1. Three years from the end of the tax year of borrowing

  2. Five years from the end of the tax year of borrowing

  3. Five years from the date of borrowing

  4. Three years from the date of borrowing

Answer and explanation

Correct answer: B - Five years from the end of the tax year of borrowing

Section 22(2)(a) of the Income-tax Act, 2025 requires the acquisition or construction to be completed within five years from the end of the tax year in which the capital was borrowed, with a certificate from the lender. If the condition fails, the ceiling falls to ₹30,000.

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