Section 24 - Deductions from income from house property - Income-tax Act, 1961

1 [ 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 6 [ 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 2 [ within 5 [five years] from the end of the financial year in which capital was borrowed ] , the amount of deduction 7 [ or, as the case may be, the aggregate of the amounts of deduction ] under this clause shall not exceed 4 [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: ] 3 [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 .] 8 [ Provided also that the aggregate of the amounts of deduction under the first and second provisos shall not exceed two lakh rupees. ] ************ Notes:- 1. Substituted by the Finance Act, 2001, w.e.f. 1-4-2002. Prior to its substitution, section 24, as amended by the Finance Act, 1968, w.e.f. 1-4-1969, Finance (No. 2) Act, 1977, w.e.f.1-4-1977, Finance Act, 1983, w.e.f. 1-4-1984, Finance Act, 1986, w.e.f. 1-4-1987, Finance Act, 1992, w.e.f. 1-4-1993, Finance Act, 1994, w.e.f. 1-4-1995, Finance (No. 2) Act, 1996, w.e.f. 1-4-1997/w.r.e.f. 1-4-1995, Finance (No. 2) Act, 1998, w.e.f. 1-4-1999, Finance Act, 1999, w.e.f. 1-4-2000 and Finance Act, 2000, w.e.f. 1-4-2001, read as under: 24. Deductions from income from house property. -(1) Income chargeable under the head Income from house property shall, subject to the provisions of sub-section (2), be computed after making the following deductions, namely:- (i) in respect of repairs of, and collection of rent from, the property, a sum equal to one-fourth of the annual value; (ii) the amount of any premium paid to insure the property against risk of damage or destruction ; (iii) [ *** ] (iv) where the property is subject to an annual charge (not being a charge created by the assessee voluntarily or a capital charge), the amount of such charge ; (v) where the property is subject to a ground rent, the amount of such ground rent ; (vi) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital. Explanation .-Where the property has been acquired or con structed with borrowed capital, the interest, if any, payable on such capital 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 a deduction under any other provision of this Act, shall be deducted under this clause in equal instal ments for the said previous year and for each of the four immedi ately succeeding previous years; (vii) any sums paid on account of land revenue or any other tax levied by the State Government in respect of the property; (viii) [ *** ] (ix) where the property is let and was vacant during a part of the year, that part of the annual value which is proportionate to the period during which the property is wholly unoccupied or, where the property is let out in parts, that portion of the annual value appropriate to any vacant part, which is proportionate to the period during which such part is wholly unoccupied. Explanation .-The deduction under this clause shall be made irrespective of whether the period during which the property or, as the case may be, part of the property was vacant precedes or follows the period during which it is let; (x) subject to such rules as may be made in this behalf, the amount in respect of rent from property let to a tenant which the assessee cannot realise. (2) No deduction shall be allowed under sub-section (1) in respect of property of the nature referred to in sub-clause (i) of clause (a) of sub-section (2), or sub-section (3) of section 23 : Provided that nothing in this sub-section shall apply to the allowance of a deduction under clause (vi) of sub-section (1) of an amount not exceeding thirty thousand rupees in respect of the property of the nature referred to in sub-clause (i) of clause (a) of sub-section (2) of section 23 or sub-section (3) of section 23 : Provided further that where the property is acquired or con structed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed before the 1st day of April, 2003, the provisions of the first proviso shall have effect as if for the words thirty thousand rupees , the words one lakh rupees had been substituted. (3) The total amount deductible under sub-section (1) in respect of property of the nature referred to in sub-clause (ii) of clause (a) of sub-section (2) of section 23 shall not exceed the annual value of the property as determined under that section.' 2. Substituted for before the 1st day of April, 2003 by the Finance Act, 2002, w.e.f. 1-4-2003. 3. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003. 4. Substituted vide THE FINANCE (No. 2) ACT, 2014, w.e.f. 1st day of April, 2015 before it was read as, one lakh fifty thousand rupees 5. Substituted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2017, before it was read as, three years 6. Inserted vide FINANCE ACT, 2019 w.e.f 01-04-2020 7. Inserted vide FINANCE ACT, 2019 w.e.f 01-04-2020 8. Inserted vide FINANCE ACT, 2019 w.e.f 01-04-2020