Deductions permissible under income from house property
In computing income from house property (let out/deemed let out) following deductions are allowed under section 24
Deductions u/s 24
- 30 % of annual value(as standard deduction for expenses)
- Interest on loan taken for purchase, construction or repair of the house, relating to the previous year
- Interest on loan for the period prior to the previous year in which the house is completed is also allowed in five equal annual installments.
Income from house property (self occupied) following deductions are allowed
On self occupied house annual value will be nil, assessee can make deduction in respect of interest paid on loan and the loss arising from such property can be set off against income from other house property or under any other head of income.
Where such property has been acquired constructed repaired renewed or reconstructed with borrowed capital, the maximum limit of deduction of interest shall be Rs 30,000
Where such house property is acquired or constructed with capital borrowed after 31.3.1999, the deduction on account of interest shall be allowed up to Rs 1,50,000