Answer

1. F

   Facts

   Under the old regime, the ₹2,00,000 limit for self-occupied houses is a combined limit, not per house. Interest above that is lost for the year. The new regime allows no interest deduction on self-occupied houses.

2. P

   Provisions and law

   • Sec 24(b) (now Sec 22(1)(b))Deduction for interest on a home loan; ₹2,00,000 cap for self-occupied houses under the old regime
   • Sec 23, Income-tax Act 1961Annual value rules: up to two self-occupied houses have nil annual value; others are treated as let out at expected rent
   • Sec 115BAC (now Sec 202)New regime is the default; business filers opt out with Form 10-IEA by the Sec 139(1) due date
3. A

   Analysis

   If you paid ₹1,60,000 on one loan and ₹1,20,000 on the other, total ₹2,80,000, you can claim only ₹2,00,000 across both under Sec 24(b) (now Sec 22(1)(b)). The ₹80,000 excess cannot be carried forward. Treating one house as let out, if actually rented, moves its interest outside the cap. Under the new regime, self-occupied interest is not allowed at all.

4. C

   Conclusion

   1. 1Total interest on all self-occupied houses.
   2. 2Cap the claim at ₹2,00,000 under the old regime.
   3. 3Consider whether either house is actually let out.
   4. 4Report interest per property.

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