The Statutory Brief

IT Act 1961 → 2025 / Sections 22–27

House property

Sections 22–27 → Sections 20–25

Annual value, 30% standard deduction, arrears of rent, co-owners, deemed owner

Sections 22–27 of the old Income-tax Act, 1961 · new sections 20–25 under the Income-tax Act, 2025

New reference Sections 20 to 25 (income from house property)

Income-tax Act, 1961Sections 22–27

  • 22: charge on annual value of buildings and land appurtenant
  • 23: annual value — expected rent vs actual rent; self-occupied nil
  • 24: 30% standard deduction and interest (separate page); 25: interest paid abroad without TDS not deductible
  • 25A arrears/unrealised rent (30% deduction); 26 co-owners; 27 deemed owner

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

Income-tax Act, 2025Sections 20 to 25 (income from house property)

  • 20: charge; 21: determination of annual value
  • 22: deductions — 30% of annual value and interest on borrowed capital
  • 23: arrears and unrealised rent; interest payable outside India without TDS (old 25) is in 22(6)
  • 24: co-owners; 25: interpretation, including deemed owner

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

Section-by-section mapping (6 sections)

1961 ActSubject2025 Act
22Income from house property20
23Annual value how determined21
25Amounts not deductible from income from house property22(6) (CBDT: 23)
25ASpecial provision for arrears of rent and unrealised rent received subsequently23
26Property owned by co-owners24
27"Owner of house property", "annual charge", etc., defined25

Source: CBDT mapping of sections, Income-tax Act 1961 to Income-tax Act 2025.

What changed

Renumbered and compacted; the computation (annual value less 30% and interest) is unchanged in substance. Finance Act 2026 extended the ₹2 lakh / ₹30,000 interest cap in section 22(2) to cover pre-construction interest (22(1)(c)).

Practice notes

  • Interest on self-occupied property and the ₹2 lakh cap: see the section 24 page.
  • Additional interest deduction for first-time buyers (old 80EE/80EEA) is on the deductions pages.

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 23 (annual value) in the new Income Tax Act?

Determination of annual value is section 21 of the Income-tax Act, 2025.

Is the 30% standard deduction on rent still available?

Yes. Section 22(1)(a) of the Income-tax Act, 2025 allows 30% of the annual value.

What is section 22 called in the new Income-tax Act, 2025?

Section 22 of the Income-tax Act, 1961 (Income from house property) corresponds to section 20 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What is section 23 called in the new Income-tax Act, 2025?

Section 23 of the Income-tax Act, 1961 (Annual value how determined) corresponds to section 21 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What is section 25 called in the new Income-tax Act, 2025?

Section 25 of the Income-tax Act, 1961 (Amounts not deductible from income from house property) corresponds to section 22(6) (CBDT: 23) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What is section 25A called in the new Income-tax Act, 2025?

Section 25A of the Income-tax Act, 1961 (Special provision for arrears of rent and unrealised rent received subsequently) corresponds to section 23 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What is section 26 called in the new Income-tax Act, 2025?

Section 26 of the Income-tax Act, 1961 (Property owned by co-owners) corresponds to section 24 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What is section 27 called in the new Income-tax Act, 2025?

Section 27 of the Income-tax Act, 1961 ("Owner of house property", "annual charge", etc., defined) corresponds to section 25 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in Sections 22–27 under the new Income Tax Act?

Renumbered and compacted; the computation (annual value less 30% and interest) is unchanged in substance. Finance Act 2026 extended the ₹2 lakh / ₹30,000 interest cap in section 22(2) to cover pre-construction interest (22(1)(c)).

Related sections

24→22Deductions from income from house property: 30% standard deduction and home-loan interest80EEA→131Additional ₹1.5 lakh deduction for interest on affordable housing loans56→92Income from other sources, including taxable gifts (old 56(2)(x))