Home loan approved in mid 2011. possession in mid 2015

S.24. Income chargeable under the head “Income from house property” shall be computed after making the following deductions, namely:—

(a) a sum equal to thirty per cent of the annual value;

(b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:

[Note that there is no lilmit for interest deduction if it pertains to OTHER THAN self occupied property] 

If you own more than 1 residential house property, then other than 1 property (of your choise, wheter you stay in there or not) shall be treated as self occupied and OTHER house properties shall be DEEMED TO BE LET OUT (even if not actually let out)

[See S.23(4)(b)

the annual value of the house or houses, other than the house in respect of which the assessee has exercised an option under clause (a), shall be determined under sub-section (1) as if such house or houses had been let.]

Explanation to S.24

Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal instalments for the said previous year and for each of the four immediately succeeding previous years:

[That is deduction for interest portion will be allowed u/s 24(b) in 5 Equal Installments starting from the year in which construction is completed]