For tax year 2026-27, an individual who has opted out of the default regime pays interest on a loan taken only to repair his self-occupied house. What is the ceiling on the interest deduction under…
Question and options
For tax year 2026-27, an individual who has opted out of the default regime pays interest on a loan taken only to repair his self-occupied house. What is the ceiling on the interest deduction under section 22(2)(b) of the Income-tax Act, 2025?
₹40,000
₹30,000
₹20,000
₹10,000
Answer and explanation
Correct answer: B - ₹30,000
Section 22(2) of the Income-tax Act, 2025 allows up to ₹2,00,000 only where the house is acquired or constructed with the borrowed capital within five years; in any other case, including a loan for repairs, the ceiling is ₹30,000. Under the default regime no interest is allowed for a self-occupied house.
Practice for these exams
-
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
IIT Kharagpur LL.M. Entrance
Subject revision
See pack details on LawMint.net -
CLAT PG
Subject revision for a passage-based exam
-
AILET PG
Subject revision
Related exam syllabi
More solved explanations in Income tax - basic concepts, residence & heads of income
- Under section 33(9)(a) of the Income-tax Act, 2025, what is the rate of additional depreciation on the actual cost of eligible new machinery or plant acquired and…
- Adam Smith has enumerated canons of taxation which are accepted universally
- A minor child with a disability of the nature specified in section 154 of the Income-tax Act, 2025 earns investment income. How is it treated under section 99?
- An established business earns income between 1 April 2026 and 31 March 2027. To which tax year does this income belong under the Income-tax Act, 2025?
- For tax year 2026-27, an individual who has opted out of the default tax regime claims a profit-linked deduction. His regular income-tax is ₹6,10,000 and his…