Schedule 24(b) – Interest on Borrowed Capital AY 2026-27

‘Schedule 24(b)’ is used to report interest paid on borrowed capital for claiming deduction under Section 24(b) of the Income Tax Act. The assessee must provide detailed information about each loan, including the lender’s name (bank/institution/person), loan account number, date of sanction, total sanctioned amount, outstanding balance as on the last date of the financial year, and the interest amount paid during the year.

• Section 24(b)of Income-tax Act, 1961

Interest paid or payable on the amount borrowed for purchase, construction, repair, renovation or reconstruction of a house property is allowed as deduction while computing income under the head ‘House Property’. Full deduction is allowed for interest paid or payable on borrowed capital if house property is let out or deemed to be let-out out. However, in case of self-occupied house properties, the deduction is limited to Rs. 30,000 or Rs. 200,000, as the case may be.

This schedule applies to ITR-1 and ITR-4