Section 24 → Section 27
Deductions from Income from House Property
Quick Answer
Section 24 of the Income Tax Act, 1961 (Deductions from Income from House Property) corresponds to Section 27 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 24
In the 1961 statute, Section 24 deals with deductions from income from house property. Allows 30% standard deduction and deduction for interest on borrowed capital (home loan).
The new code maps this to Section 27: the provision is retained and renumbered as Section 27 of the Income-tax Act, 2025, applying from 1st April 2026. Retained. The self-occupied property interest limit is maintained but strictly monitored to prevent double claiming between spouses.
On the ground, changes to Section 24 carry a High impact. Essential for home loan borrowers.
Sec 24
Provision Summary
Allows 30% standard deduction and deduction for interest on borrowed capital (home loan).
Sec 27
Provision Summary
Retained. The self-occupied property interest limit is maintained but strictly monitored to prevent double claiming between spouses.
Key Changes & Highlights
- Pre-construction interest calculation completely automated based on loan disbursement dates.
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Frequently Asked Questions
What does Section 24 of the Income Tax Act 1961 deal with?
Section 24 of the Income Tax Act, 1961 covers deductions from income from house property. Allows 30% standard deduction and deduction for interest on borrowed capital (home loan).
Where does Section 24 of the ITA 1961 go under the Income-tax Act, 2025?
Section 24 of the Income Tax Act, 1961 maps to Section 27 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. The self-occupied property interest limit is maintained but strictly monitored to prevent double claiming between spouses.
Why does the change to Section 24 matter for taxpayers?
The transition impact for Section 24 is rated High. Essential for home loan borrowers.
What are the key changes to Section 24 under the Income-tax Act, 2025?
Pre-construction interest calculation completely automated based on loan disbursement dates. These points are specific to Section 24 (Deductions from Income from House Property).
Disclaimer: This mapping of Section 24 (Deductions from Income from House Property) to Section 27 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 24 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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