The restriction applies only to interest actually claimed as a deduction; interest paid beyond the applicable deduction limits, including amounts exceeding the Rs. Interest paid on borrowed capital for acquiring, constructing, renewing, or reconstructing a house property has long been a significant tax benefit for homeowners in India. The Pre-Amendment Position and the Risk of Double BenefitSection 24(b) expressly allows deduction of interest payable on borrowed capital used for the property. Importantly, the restriction applies only to the amount of interest claimed as deduction under Section 24(b) or Chapter VIA. It held that deduction under Section 24(b) and computation of capital gains under Section 48 operate under different heads of income (“Income from house property” and “Capital gains”).