www.Aaptaxlaw.com
 
 

 

What are the Deductions from income from house property? What are the Amounts not deductible from income from house property? Section 24 and 25 of Income Tax Act 1961

Deductions from income from house property and Amounts not deductible from income from house property are defined under section 24 and 25 of Income Tax Act 1961. Provisions under these sections are:

Section 24 of Income Tax Act "Deductions from income from house property"

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:
Provided that in respect of property referred to in sub-section (2) of section 23, the amount of deduction shall not exceed thirty thousand rupees :

Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed within three years from the end of the financial year in which capital was borrowed, the amount of deduction under this clause shall not exceed 9[two lakh rupees].
Explanation.—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:

 

Provided also that no deduction shall be made under the second proviso unless the assessee furnishes a certificate, from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property, or, conversion of the whole or any part of the capital borrowed which remains to be repaid as a new loan.
Explanation.—For the purposes of this proviso, the expression "new loan" means the whole or any part of a loan taken by the assessee subsequent to the capital borrowed, for the purpose of repayment of such capital.

Section 25 of Income Tax Act "Amounts not deductible from income from house property"

25. Notwithstanding anything contained in section 24, any interest chargeable under this Act which is payable outside India (not being interest on a loan issued for public subscription before the 1st day of April, 1938), on which tax has not been paid or deducted under Chapter XVII-B and in respect of which there is no person in India who may be treated as an agent under section 163 shall not be deducted in computing the income chargeable under the head "Income from house property".

 

   
 

Income Tax Act 1961

What is Income from house property? Annual value how determined? Section 22 and 23 of Income Tax Act 1961

What are the Deductions from income from house property? What are the Amounts not deductible from income from house property? Section 24 and 25 of Income Tax Act 1961

What is the Special provision for cases where unrealised rent allowed as deduction is realised subsequently? Is Unrealised rent received subsequently to be charged to income-tax? Section 25A and 25AA of Income Tax Act 1961

What is the Special provision for arrears of rent received? What is the treatment of Property owned by co-owners? Section 25B and 26 of Income Tax Act 1961

What is Owner of house property annual charge etc. ? Section 27 of Income Tax Act 1961

 

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap