The Income-tax Act, 2025 renumbered everything. Here is the home loan map.
The Act came into force on 1 April 2026 and repeals the six-decade-old Income-tax Act, 1961 — cutting 800+ sections to 536. Section 24(b) is now s.22. Section 80C is s.123. Every mapping below was checked against the Act itself, not a summary.
Which Act applies to you right now?
Both. That is the part everyone gets wrong.
| What you are doing | Which Act governs it |
|---|---|
| Filing your return this July, for FY 2025-26 | Income-tax Act, 1961 — the repealed one. Use the old section numbers. |
| Advance tax and planning for tax year 2026-27 | Income-tax Act, 2025 — the new numbers. |
The CBDT is explicit: returns for the period governed by the old Act are filed on the old Act's forms, while advance tax from June 2026 follows the new Act. Official CBDT FAQ
The mapping, for home loan borrowers
| Act, 1961 | Act, 2025 | Amount | Status | What it is |
|---|---|---|---|---|
| s.24(b) | s.22(1)(b) & (c); cap in s.22(2) | ₹2,00,000/yr | unchanged | Interest deduction cap — self-occupied property |
| s.80C | s.123, read with Schedule XV | ₹1,50,000/yr | unchanged | Principal repayment deduction cap (shared with EPF, PPF, ELSS, insurance) |
| s.80EEA | s.131 | ₹1,50,000/yr | closed — 2019–2022 only | Additional interest deduction — first-time buyers (CLOSED) |
| s.80EE | s.130 | ₹50,000/yr | closed — 2016–2017 only | Additional interest deduction — first-time buyers, FY 2016-17 window (CLOSED) |
| s.80E | s.129 | — | unchanged | Education loan interest — no cap, 8 years |
| s.115BAC | s.202 | slab structure | unchanged | Default tax regime — disallows s.24(b) self-occupied, 80C and HRA |
| s.87A | s.156 — s.156(1) old regime, s.156(2) new regime | ₹60,000 (new regime) | unchanged | Rebate — wipes tax to nil below the threshold |
| s.10(13A) | Schedule III, Sl. No. 11, read with s.11 | — | unchanged | House Rent Allowance exemption |
| s.2(28A) | s.2(59) | — | unchanged | "Interest" includes service fees — basis for deducting loan processing fees |
| s.32 | s.33 | — | unchanged | Depreciation — vehicles used for business |
Every 2025-Act link goes to the section text on incometaxindia.gov.in. Generated from
data/sources.json · verified 2026-07-15
What actually changed
1. “Assessment year” no longer exists
The 2025 Act uses “tax year” in place of “previous year”, and discontinues “assessment year” entirely. It is not a rename — the concept is gone. If a site is telling you about “AY 2027-28” under the new Act, it has not read it.
2. Pre-construction interest is now expressly inside the ₹2 lakh cap
This is the one substantive change we found. Under the 1961 Act, the pre-construction limb (claimable in five annual instalments) sat in the Explanation to s.24. In the 2025 Act it is s.22(1)(c) — and Finance Act 2026 amended s.22(2) w.e.f. 1 April 2026 to substitute “sub-section (1)(b) and (c)”, pulling it expressly inside the ceiling. The amount is unchanged; the scope of what the ceiling covers was clarified.
3. Nothing about the money
₹2,00,000 interest. ₹1,50,000 principal. ₹30,000 if construction overruns five years. The new regime slabs, the ₹60,000 rebate, the ₹75,000 standard deduction. All identical. If your tax bill changes this year, it is not because of this Act.
Two deductions that are closed — and still being advertised
Both were re-enacted verbatim in the 2025 Act, which makes them look current in a section list. They are not. Their sanction windows are historic, and re-enactment does not reopen them.
| Deduction | Amount | Loan must have been sanctioned | Closed for |
|---|---|---|---|
| s.80EEA → s.131 | ₹1,50,000/yr | 1 Apr 2019 – 31 Mar 2022 | 4 years |
| s.80EE → s.130 | ₹50,000/yr | 1 Apr 2016 – 31 Mar 2017 | 9 years |
If your loan was sanctioned inside one of those windows you may keep claiming until it is repaid. Otherwise neither applies, and no calculator on this site includes them. In July 2026 you can still find major finance sites offering both to new buyers.
What this means in practice
- Your deductions are unaffected. Claim exactly what you claimed last year.
- Cite the right Act for the right year. Old numbers for the FY 2025-26 return you are filing now; new numbers for tax year 2026-27 planning.
- Ignore “80EE / 80EEA” pitches unless your loan predates 2022. Re-enactment is not revival.
- The old regime is now a hard sell. Budget 2025 restructured the new-regime slabs and inverted the usual advice — see old vs new regime, recomputed.
Work out your own position with the home loan tax benefit calculator, which applies the caps against your real amortisation schedule rather than assuming you use them in full.
Sources
- PIB — Income-tax Act, 2025 comes into force from 1 April 2026
- Gazette notification — Income-tax Act, 2025 (passed 12 Aug 2025, assented 21 Aug 2025)
- CBDT — objective and scope of the new Act
- Income-tax Act, 2025 — full text
Every section mapping above was verified against the Act text on incometaxindia.gov.in in July 2026, not against secondary summaries. We are not a law firm and this is not tax advice; confirm your own position with a CA.
Sources & standards
Every regulated figure on this page, what it is, and the primary source it comes from. Two Acts are live: the Income-tax Act, 1961 governs FY 2025-26 — the return being filed now — while the Income-tax Act, 2025 governs FY 2026-27 onward. The amounts are unchanged; only the section numbers moved.
| What | Current value | Source | Verified |
|---|---|---|---|
| Interest deduction cap — self-occupied property | ₹2,00,000/yr | Income-tax Act, 1961 — s.24(b) (FY 2025-26 & earlier) Income-tax Act, 2025 — s.22(1)(b) & (c); cap in s.22(2) (in force 1 Apr 2026) | 2026-07 |
| Interest cap if construction not completed within 5 years | ₹30,000/yr | Income-tax Act, 1961 — s.24(b) proviso (FY 2025-26 & earlier) Income-tax Act, 2025 — s.22(2)(b) (in force 1 Apr 2026) | 2026-07 |
| Principal repayment deduction cap (shared with EPF, PPF, ELSS, insurance) | ₹1,50,000/yr | Income-tax Act, 1961 — s.80C (FY 2025-26 & earlier) Income-tax Act, 2025 — s.123, read with Schedule XV (in force 1 Apr 2026) | 2026-07 |
| Additional interest deduction — first-time buyers (CLOSED) closed | ₹1,50,000/yr window 2019-04-01 → 2022-03-31 | Income-tax Act, 1961 — s.80EEA (FY 2025-26 & earlier) Income-tax Act, 2025 — s.131 (in force 1 Apr 2026) | 2026-07 |
| Additional interest deduction — first-time buyers, FY 2016-17 window (CLOSED) closed | ₹50,000/yr window 2016-04-01 → 2017-03-31 | Income-tax Act, 1961 — s.80EE (FY 2025-26 & earlier) Income-tax Act, 2025 — s.130 (in force 1 Apr 2026) | 2026-07 |
| Education loan interest — no cap, 8 years | — | Income-tax Act, 1961 — s.80E (FY 2025-26 & earlier) Income-tax Act, 2025 — s.129 (in force 1 Apr 2026) | 2026-07 |
| Default tax regime — disallows s.24(b) self-occupied, 80C and HRA | std deduction ₹75,000 7 slabs, top rate 30% | Income-tax Act, 1961 — s.115BAC (FY 2025-26 & earlier) Income-tax Act, 2025 — s.202 (in force 1 Apr 2026) | 2026-07 |
| Optional regime — retains deductions at higher slab rates | std deduction ₹50,000 4 slabs, top rate 30% | 2026-07 | |
| Rebate — wipes tax to nil below the threshold | ₹60,000 (to ₹12,00,000 taxable) | Income-tax Act, 1961 — s.87A (FY 2025-26 & earlier) Income-tax Act, 2025 — s.156 — s.156(1) old regime, s.156(2) new regime (in force 1 Apr 2026) | 2026-07 |
| "Interest" includes service fees — basis for deducting loan processing fees | — | Income-tax Act, 1961 — s.2(28A) (FY 2025-26 & earlier) Income-tax Act, 2025 — s.2(59) (in force 1 Apr 2026) | 2026-07 |
| Depreciation — vehicles used for business | — | Income-tax Act, 1961 — s.32 (FY 2025-26 & earlier) Income-tax Act, 2025 — s.33 (in force 1 Apr 2026) | 2026-07 |
| House Rent Allowance exemption | — | Income-tax Act, 1961 — s.10(13A) (FY 2025-26 & earlier) Income-tax Act, 2025 — Schedule III, Sl. No. 11, read with s.11 (in force 1 Apr 2026) | 2026-07 |
Not tax or legal advice. See every standard this site uses →