Section 15 - Substitution of new section for section 24 - Finance Act, 2001

15. Substitution of new section for section 24 For section 24 of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 2002, namely :- 24. 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 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 before the 1st day of April, 2003, the amount of deduction under this clause shall not exceed one lakh fifty thousand 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. .