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Rule / Regulation · House property

Home-loan interest deduction on house property

By CA Rajat Agrawal Updated 03 Jul 2026

In plain language

Interest on money borrowed to buy, build, repair or reconstruct a house is deductible under Section 22:

  • Self-occupied house: up to ₹2,00,000 per year (where construction/acquisition completes within five years and an interest certificate is furnished); otherwise ₹30,000.
  • Let-out house: the actual interest is deductible.
  • Pre-construction interest is allowed in five equal annual instalments starting from the year the property is completed.

Frequently asked questions

Can I deduct home loan interest before construction is complete?
Pre-construction interest is not deductible during construction, but is allowed in five equal instalments from the year the property is completed.
C
CA Rajat Agrawal
Chartered Accountant, EaseValue · Reviewed 03 Jul 2026
This explainer is prepared and reviewed by EaseValue's tax team, based on the text of the Income-tax Act, 2025 (as amended by the Finance Act, 2026).
Disclaimer: This page explains the law in general terms for education and is not professional advice. The Income-tax Act, 2025 takes effect from 1 April 2026; provisions, thresholds and interpretations may change. Please confirm your specific position with our team before acting.

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📂 House Property Income under the Income-tax Act, 2025 (overview)

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