Section 131 - Deduction in respect of interest on loan taken for certain house property
This provision gives up to ₹1.5 lakh additional interest deduction for qualifying affordable-house loans sanctioned from 1 April 2019 to 31 March 2022, for an individual not eligible under section 130.
Reviewed by CA Nikhil Gupta · Updated 9 October 2026
Current-law control
This page uses the consolidated Income-tax Act, 2025 as amended by the Finance Act, 2026. The Act and Income-tax Rules, 2026 operate from 1 April 2026. Earlier years and saved proceedings remain subject to the repeal-and-savings framework.
Primary statute: Income Tax Department consolidated Act | Rules: Notified Income-tax Rules, 2026
2-minute decode
This provision gives up to ₹1.5 lakh additional interest deduction for qualifying affordable-house loans sanctioned from 1 April 2019 to 31 March 2022, for an individual not eligible under section 130.
Who should use this section
Individuals/HUFs or other persons falling within the eligibility wording of this personal-payment deduction; status and payment conditions must be checked for the tax year This applicability note is specific to section 131.
Old-law bridge
1961 Act section 80EEA
The bridge is navigational only. A 1961 Act case or rule is carried forward only after checking wording, transition provisions and the current 2025 Act text.
Professional alert
Exception / professional alert It is cohort-specific and anti-duplication applies. Verify the exact sanction date and stamp-duty value.
Connected Income-tax Rules, 2026 and Forms
No provision-specific Rule/Form is independently mapped in this tranche. General return, procedure and evidence rules can still apply.
Worked application
A qualifying first-time buyer pays ₹1.8 lakh interest after the house-property computation. Section 131 can allow up to ₹1.5 lakh if all sanction, stamp-duty-value and ownership conditions are met.
Evidence / compliance checklist
- For section 131, retain proof of payment and the instrument/recipient document that establishes statutory eligibility.
- Match beneficiary, ownership/residency/status conditions to the text for the relevant tax year (section 131: Deduction in respect of interest on loan taken for certain house property).
- Preserve certificate/approval/registration details where the deduction depends on an approved institution or authority (section 131: Deduction in respect of interest on loan taken for certain house property).
- Keep a computation showing the statutory ceiling, qualifying base and any cash/payment-mode restriction (section 131: Deduction in respect of interest on loan taken for certain house property).
Common mistake
Claiming section 131 from a payment receipt alone without testing the statutory ceiling, recipient/instrument eligibility, payment mode and required certificate.
Recommended approach
For section 131, fix the governing tax year, identify the operative sub-section for “Deduction in respect of interest on loan taken for certain house property”, trace every amount to evidence, apply only verified Rule/Form links, and retain a computation that another reviewer can reproduce from the primary source.
Thresholds, periods and timing checkpoints
- house property, subject to a maximum limit of ₹ 150000 in a tax year and on fulfilment of conditions specified in sub-section (2), for the tax year beginning on the
- 1st April, 2019 and subsequent tax years.
- beginning on the 1st April, 2019 and ending on the 31st March, 2022;
- forty-five lakh rupees; and
- other provision of this Act for the same or any other tax year.
Judicial / interpretive bridge
No section-specific Supreme Court bridge is included for section 131 unless text-equivalence with the 2025 Act has been checked. Legacy cases should not be transplanted into section 131 merely because the subject is similar.
Related provisions
Current statutory text
Primary-source trail
FAQs
What does section 131 of the Income-tax Act, 2025 cover?
Section 131 covers deduction in respect of interest on loan taken for certain house property. The operative result depends on the exact statutory conditions shown on this page and applies from 1 April 2026, subject to transition/savings provisions.
Who should check section 131?
Individuals/HUFs or other persons falling within the eligibility wording of this personal-payment deduction; status and payment conditions must be checked for the tax year This applicability note is specific to section 131.
Are there specific Rules or Forms for section 131?
No provision-specific Rule/Form independently mapped in this tranche.