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JAIIB RBWM Unit 28 — Housing Finance and Tax Planning: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 4 of the November 2026 cycle (29 November 2026)

This page is a free slice of our JAIIB RBWM question bank for Unit 28 — Housing Finance and Tax Planning (Home Loans). The Mock Centre holds 45 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

RBWM · Home Loans45 MCQs in the Mock Centre5 free belowPaper on 29 November 2026

Key facts examiners test from this unit

  1. Interest = Sec 24(b): ₹2L self-occupied (loan on/after 1-4-1999, completion within 5 years of the loan-FY's end); ₹30,000 for repairs/renewal or pre-1999 loans; UNLIMITED for let-out.
  2. Interest is deductible on ACCRUAL (payable) basis; PENAL interest never deductible.
  3. Pre-construction interest: 5 equal yearly instalments from completion.
Law update, September 2026. The Income-tax Act 2025 (from 1 April 2026) renumbers these provisions; the interest and principal deductions continue, and the old regime's section numbers remain the textbook answers.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
Tax deduction on home-loan INTEREST comes under:
Why (b): Home-loan tax benefits split by component: INTEREST is deducted under SECTION 24(b) — the house-property head's interest provision.
Law update, Sep 2026: The Income-tax Act 2025 (from 1 April 2026) renumbers these provisions; the interest and principal deductions continue, and the old regime's section numbers remain the textbook answers.
Question 2 of 5
PRINCIPAL repayment deduction comes under:
Why (b): PRINCIPAL repayment is deducted under SECTION 80C — inside the ₹1.5-lakh basket with PPF, ELSS and the rest.
Law update, Sep 2026: The Income-tax Act 2025 (from 1 April 2026) renumbers these provisions; the ₹1.5-lakh principal deduction continues under the old regime, and Section 80C remains the textbook answer.
Question 3 of 5
80C's maximum principal deduction:
Why (b): The maximum principal deduction is ₹1.5 LAKH — the 80C basket's ceiling, shared with all other 80C items.
Question 4 of 5
Section 80EE is available to:
Why (b): Section 80EE is for FIRST-TIME HOME BUYERS — the extra incentive for those buying their first house.
Question 5 of 5
For a LET-OUT property, the Sec 24(b) interest deduction is:
Why (b): The Rs 2 lakh ceiling is a SELF-OCCUPIED feature; let-out (or deemed let-out) property deducts entire interest, with overall house-property loss set-off limited by law.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
Sec 24(b)Sec 80CInterest vs principal
₹2L₹30,000Standard vs repair/pre-1999 caps
Practise all 45 questions on Unit 28. The free demo opens a slice of every subject with the same explanations; the RBWM Online-only pass unlocks all 1,912 RBWM questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.