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ITA 1961 → ITA 2025Deductions

Section 24(b) (New Regime)

Loss of Rs. 2 Lakh Home Loan Interest Deduction on Self-Occupied Property

DeletedExtremely High - Makes home loans significantly more expensive post-tax.

Quick Answer

Section 24(b) (New Regime) (Loss of Rs. 2 Lakh Home Loan Interest Deduction on Self-Occupied Property) has been deleted under the Income-tax Act, 2025, effective 1st April 2026.

What changed for Section 24(b) (New Regime)

Section 24(b) (New Regime) of the 1961 Act sets out the rules on loss of rs. 2 lakh home loan interest deduction on self-occupied property. Deduction up to Rs. 2,00,000 for interest paid on a home loan for a self-occupied property.

Under the Income-tax Act, 2025 (effective 1st April 2026), this provision has been deleted — there is no successor section carrying it forward. Not Applicable. You cannot set off the Rs. 2 Lakh interest loss against your salary income under the Default Tax Regime.

The transition impact on Section 24(b) (New Regime) is assessed as Extremely High. Makes home loans significantly more expensive post-tax.

Old Law (ITA 1961)Ch: IV-C

Sec 24(b) (New Regime)

Provision Summary

Deduction up to Rs. 2,00,000 for interest paid on a home loan for a self-occupied property.

Removed under ITA 2025

Deleted

Provision Summary

Not Applicable. You cannot set off the Rs. 2 Lakh interest loss against your salary income under the Default Tax Regime.

Key Changes & Highlights

  • The most popular deduction for middle-class homeowners is completely scrapped.

Related Sections

Frequently Asked Questions

Which subject does Section 24(b) (New Regime) of the 1961 Act cover?

Section 24(b) (New Regime) of the Income Tax Act, 1961 covers loss of rs. 2 lakh home loan interest deduction on self-occupied property. Deduction up to Rs. 2,00,000 for interest paid on a home loan for a self-occupied property.

Is Section 24(b) (New Regime) of the ITA 1961 still applicable under the Income-tax Act, 2025?

Section 24(b) (New Regime) has been deleted under the Income-tax Act, 2025, with no successor section carrying it forward from 1st April 2026. Not Applicable. You cannot set off the Rs. 2 Lakh interest loss against your salary income under the Default Tax Regime.

How does the Income-tax Act, 2025 affect Section 24(b) (New Regime) in practice?

The transition impact for Section 24(b) (New Regime) is rated Extremely High. Makes home loans significantly more expensive post-tax.

What is new about Section 24(b) (New Regime) under the Income-tax Act, 2025?

The most popular deduction for middle-class homeowners is completely scrapped. These points are specific to Section 24(b) (New Regime) (Loss of Rs. 2 Lakh Home Loan Interest Deduction on Self-Occupied Property).

Disclaimer: This mapping of Section 24(b) (New Regime) (Loss of Rs. 2 Lakh Home Loan Interest Deduction on Self-Occupied Property) under the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 24(b) (New Regime) is currently marked Deleted, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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