DEDUCTIONS FROM HOUSE PROPERTY

DEDUCTIONS FROM HOUSE PROPERTY

1. DEDUCTION U/S.23 (1): For let out property, amount actually paid by the owner towards taxes levied by any local authority in respect of the property is deductible from Annual value (taxes pertaining to any previous years).

2. DEDUCTION U/S.24 (a): For let out property, deduction of 30% of the Net Annual Value is allowed. No separate deduction for Repairs, Collection Charges, Insurance Premium, Annual Charge and Ground Rent.

3. INTEREST ON BORROWED LOAN (U/S.24 (b)):
FOR SELF OCCUPIED PROPERTY
(a) If Property is acquired or constructed with loan taken after 01/04/99 and construction is completed within 3 years from the end of the financial year in which the capital was borrowed – Rs.1, 50,000 or actual interest paid/payable whichever is less is deductible.
(b) If new housing loan is taken for repayment of old loan (old loan taken after 1/4/99) – Rs.1, 50,000 or actual interest paid/payable whichever is less is allowed as deduction.
(c) If Property is acquired or constructed with loan taken before 01/04/99, Rs.30, 000 or actual interest paid/payable whichever is less is allowed as deduction.
(d) If loan taken for Repairs, renewal, reconstruction of property, Rs.30,000 or actual interest paid/payable whichever is less is allowed as deduction.

FOR LET OUT PROPERTY, actual interest paid/payable can be claimed as deduction.
ONLY OWNER OF THE HOUSE PROPERTY CAN AVAIL THE ABOVE DEDUCTIONS.