Section 24 → Section 22

Deductions from income from house property: 30% standard deduction and home-loan interest

Section 24 of the old Income-tax Act, 1961 · new section 22 under the Income-tax Act, 2025

New reference Section 22

Income-tax Act, 1961Section 24

24(a): standard deduction of 30% of annual value
24(b): interest on borrowed capital; pre-construction interest in five instalments
Self-occupied property: interest capped at ₹2 lakh (₹30,000 in some cases)
No deduction for interest payable outside India without TDS

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 22

Same deductions, now section 22
22(1)(a) 30%; 22(1)(b) interest; 22(1)(c) pre-construction interest in five instalments
Self-occupied cap ₹2,00,000 / ₹30,000 retained (22(2) and (5))
Certificate from lender required for the ₹2 lakh limit

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered. The Finance Act 2026 clarified that the ₹2 lakh cap for self-occupied property covers both current and pre-construction interest (section 22(1)(b) and (c)).

Practice notes

Annual value computation (old 23) is now section 21.
Under the new regime, interest on self-occupied property is generally not deductible.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is section 24 called in the new Income-tax Act, 2025?

Section 24 of the Income-tax Act, 1961 corresponds to Section 22 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 24 under the new Income Tax Act?

Renumbered. The Finance Act 2026 clarified that the ₹2 lakh cap for self-occupied property covers both current and pre-construction interest (section 22(1)(b) and (c)).

Is section 24 still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 24 of the 1961 Act. Section 22 of the 2025 Act applies from tax year 2026-27.

Related sections

80C→123Deduction for life insurance, PF, PPF, ELSS, tuition fees, home-loan principal and other specified savings 50C→78Stamp duty value as sale consideration for land or building 194-I→393TDS on rent paid by businesses (and by individuals/HUFs, old 194-IB)