As of 4 November 2026, under the Income-tax Act, 2025, an individual is taxed under the old tax regime…
The maximum deduction is ₹ 2,00,000. Section 22(2)(a) of the Income-tax Act, 2025 sets this ceiling for qualifying acquisition or construction borrowing for self-occupied…
Choose your answer
As of 4 November 2026, under the Income-tax Act, 2025, an individual is taxed under the old tax regime and owns a self-occupied house acquired or constructed with borrowed capital. Assuming the acquisition or construction is completed within five years from the end of the tax year of borrowing and the required interest certificate is furnished, what is the maximum annual deduction for interest payable on that capital?
Answer and explanation
Correct answer B
The maximum deduction is ₹ 2,00,000. Section 22(2)(a) of the Income-tax Act, 2025 sets this ceiling for qualifying acquisition or construction borrowing for self-occupied property, subject to its completion and certificate conditions. The deduction is unavailable for such property under the new tax regime.
Practice for these exams
-
Gujarat SET (GSET)