Residential House property and it's loan can shown in Balance sheet

Residential let-out property and personal home loans must be excluded from the business Balance Sheet (Schedule BS) in ITR-3, with any personal business transactions recorded as Proprietor's Drawings. Rental income and home loan interest must be reported under Schedule HP (Section 24), while home loan principal repayments are claimed under Schedule VIA (Section 80C under the Old Regime), leaving Schedule BS to reflect only transportation business assets and liabilities.