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Pre-construction home-loan interest — claim it in 5 instalments (Section 22, old 24(b))

✍️ EaseValue Advisors · Updated 18 Jul 2026 · FY 2025-26
In short

Interest paid on a home loan before the house is ready isn't lost — claim it in 5 equal instalments from the year of completion — Section 22, Income-tax Act 2025 (old 24(b)).

How it works

Add up all interest from the loan date to 31 March before completion, then deduct it in 5 equal yearly instalments starting the year the house is completed — within the overall ₹2 lakh cap for a self-occupied house.

Example

₹5 lakh interest paid during construction → ₹1 lakh a year for 5 years, added to your regular interest deduction.

Who it helps

Anyone who took a loan for an under-construction flat. Old regime.

Keep the running total

  • Track all interest from the loan date to 31 March before completion — your bank certificate shows it.
  • Divide by 5 and claim one-fifth each year from the year of completion, inside the ₹2 lakh self-occupied cap.
The law behind it
Section 22 (old 24(b))
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General information for FY 2025-26 (AY 2026-27), not advice on your specific case. Limits, rates and conditions change with each Finance Act and depend on your facts — confirm before acting. © EaseValue Advisors LLP.
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