Section 24 of Income Tax Act –Deductions from income from house property
Income chargeable under the head “Income from house property” shall be computed after making the following deductions, namely:—
(a) a sum equal to thirty percent 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 or, as the case may be, the aggregate of 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 five years from the end of the financial year in which capital was borrowed, the amount of deduction or, as the case may be, the aggregate of the amounts of deduction under this clause shall not exceed 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 installments 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:
Provided also that the aggregate of the amounts of deduction under the first and second provisos shall not exceed two lakh rupees.
Related Rule(s)
Rule 4 of Income-Tax Rule(s)-Unrealised rent
For the purposes of the Explanation below sub-section (1) of section 23, the amount of rent which the owner cannot realise shall be equal to the amount of rent payable but not paid by a tenant of the assessee and so proved to be lost and irrecoverable where,—
| (a) | the tenancy is bona fide; | |
| (b) | the defaulting tenant has vacated, or steps have been taken to compel him to vacate the property; | |
| (c) | the defaulting tenant is not in occupation of any other property of the assessee; | |
| (d) | the assessee has taken all reasonable steps to institute legal proceedings for the recovery of the unpaid rent or satisfies the Assessing Officer that legal proceedings would be useless. |
Rule 26C of Income-Tax Rule(s)-Furnishing of evidence of claims by employee for deduction of tax under section 192
(1) The assessee shall furnish to the person responsible for making payment under sub-section (1) of section 192, the evidence or the particulars of the claims referred to in sub-rule (2), in Form No.12BB for the purpose of estimating his income or computing the tax deduction at source.
(2) The assessee shall furnish the evidence or the particulars specified in column (3), of the Table below, of the claim specified in the corresponding entry in column (2) of the said Table:—
Table
| Sl. No | Nature of claims | Evidence or particulars |
| (1) | (2) | (3) |
| 1. | House Rent Allowance. | Name, address and permanent account number of the landlord/landlords where the aggregate rent paid during the previous year exceeds rupees one lakh. |
| 2. | Leave travel concession or assistance. | Evidence of expenditure. |
| 3. | Deduction of interest under the head “Income from house property”. | Name, address and permanent account number of the lender. |
| 4. | Deduction under Chapter VI-A. | Evidence of investment or expenditure.] |
Related Keywords-sec 24 of income tax, income tax section 24