For tax year 2026-27, an individual who has opted out of the new tax regime under section 202 of the Income-tax Act, 2025 pays interest on a loan taken to construct a self-occupied house, completed…

Section 22(2)(a) of the Income-tax Act, 2025 caps the interest deduction for a self-occupied house at ₹2,00,000 where the loan was for acquisition or construction completed within five years from the end of the tax year of borrowing and the lender's certificate is furnished. The ₹30,000 limit under section 22(2)(b) applies in other cases, such as a loan for repairs or a construction not completed in time. Under the new tax regime this deduction is not available at all for a self-occupied house.