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
(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].
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.
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".
What is Relief to company in respect of dividend paid out of past taxed profits? What is Relief to certain charitable institutions or funds in respect of certain dividends? Section 236 and 236A of Income Tax Act 1961
What is the meaning Vice-Chairman to act as Chairman or to discharge his functions in certain circumstances? What is the Power of Chairman to transfer cases from one Bench to another? Section 245BB and 245BC of Income Tax Act 1961
What is Procedure on receipt of an application under section 245C? What is Power of Settlement Commission to order provisional attachment to protect revenue? Section 245D and 245DD of Income Tax Act 1961