Tax on rental

repayment of principal amount is not an allowable deduction from rental income but interest paid on such loan is an allowable deduction

Dear Client,

            If the net interest payable on borrowed capital is higher than the rental income from house property then the loss from such income is allowed to be set off against income under any other head for a period of 8 subsequent years against house property income.as per Section 71 B of Finance Act 1998.

Ms.Nirmala P.Rao

Legal Expert

Had if You Got the House Loan, then You Can Claim the Principal Repayment Under  Section 80C and Interest Under Section 24 of Income Tax Act,1961

Refer Section Analysis for Section 24 of IT Act, Given on this Link:https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-24

If You need , You may Refer Section 80C on this Link: https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-80C

Dear Mr. Ranjith,

No deduction of repayment is allowable from the income of house property. If you had paid any interest during the relevant income period, it is allowable deduction from the income. You may adhoc deduction at 30% of the rent realize from the rent income. I hope that this is clear answer for your question.