Interest on Refundable Deposits of tenants is allowable u/s. 24, if it uses to repay housing loan.

Interest paid on refundable security deposits received from tenants is allowable under section 24(b) if deposits are used to repay loan taken for purchase of house property

Where assessee repaid interest-free loan taken to purchase immovable property from interest-bearing refundable deposits received from tenants, these deposits are "borrowed capital" within the meaning of section 24(b) and interest on such deposits are deductible u/s 24(b).