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Under the Income-tax Act, 2025, for tax year 2026–27, an individual using the old tax regime acquires a…

The maximum deduction is ₹ 2,00,000. Under the Income-tax Act, 2025, this limit applies to qualifying acquisition or construction of self-occupied property when completion…

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Under the Income-tax Act, 2025, for tax year 2026–27, an individual using the old tax regime acquires a self-occupied house with borrowed capital. Acquisition is completed within five years from the end of the tax year in which capital was borrowed, and the required interest certificate is furnished. What is the maximum annual deduction for interest on this capital, assuming no other self-occupied house interest is claimed?

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Correct answer D

The maximum deduction is ₹ 2,00,000. Under the Income-tax Act, 2025, this limit applies to qualifying acquisition or construction of self-occupied property when completion and interest-certificate conditions are met; repair and renewal borrowing falls under the lower ₹ 30,000 limit.

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