Interest deduction for self-occupied property disallowed in new tax regime; opt old regime in ITR to claim. Interest on borrowed capital for a self-occupied property is not deductible in the new tax regime; to claim that deduction the taxpayer must opt for the old tax regime by selecting the designated opting-out option in the relevant ITR form (affirmative option in ITR 1/ITR 2 or 'Yes, within due date' in ITR 3/ITR 4/ITR 5).