Income-tax Act,1961
Act No : 43
Section :
Deductions from income from house property.
24. Deductions from income from house property 1(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:- 2[(i) in respect of repairs of, and collection of rent from, the property, a sum equal to one-fifth of the annual value;] (ii) the amount of any premium paid to ensure the property against risk of damage or destruction; 3[(iii) * * * 1 (iv) where the property is subject to an annual charge 4[(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. --------------------------------------------------------------------- (a) if the house was not actually occupied by the owner during the whole of the previous year, be taken to be nil; or (b) if the house was actually occupied by the owner for a fraction of the previous year, be taken to be that fraction of the annual value determined under sub-section (2): Provided that the following conditions are in either case fulfilled:- (i) the house is not actually let, and (ii) no other benefit therefrom is derived by the owner." 2 Substituted by the Finance Act, 1992, w.e.f. 1-4-1993. Prior to the substitution, clause (i), as originally enacted, read as under: "(i) in respect of repairs,- (a)where the property is in the occupation of the owner, or where the property is let to a tenant and the owner has under-taken to bear the cost of repairs, a sum equal to one-sixth of the annual value; (b)where the property is in the occupation of a tenant who has undertaken to bear the cost of repairs,- (i) the excess of the annual value over the amount of rent payable for a year by the tenant; or (ii)a sum equal to one-sixth of the annual value, whichever is less;" 3 Omitted by the Finance Act, 1968, w.e.f. 1-4-1969. 4 Substituted for "not being a capital charge" by the Finance Act, 1968, w.e.f. 1-4-1969. ---------------------------------------------------------------------- 1.154 1[Explanation.-Where the property has been acquired or constructed 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 instalments for the said previous year and for each of the four immediately succeeding previous years;] (vii) any sums paid on account of land revenue 2[or any other tax levied by the State Government] in respect of the property; 3[(viii) Omitted by the Finance Act, 1992, w.e.f 1-4-1993.] (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 4[* * *]. 5[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. 6[(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 7 [ten] 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. (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.] ---------------------------------------------------------------------- 1 Inserted by the Finance Act, 1983, w.e.f. 1-4-1984. 2 Inserted by the Finance Act, 1968, w.e.f. 1-4-1969. 3 Prior to the omission, clause (viii), as originally enacted, read as under: "(viii) any sums spent to collect the rent from the property, not exceeding six per cent of the annual value of the property;" 4 The punctuation and word "; and" omitted by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1977. 5 Inserted, ibid. 6 Substituted by the Finance Act, 1986, w.e.f. 1-4-1987. Prior to the substitution, sub-section (2) read as under: "(2) The total amount deductible under sub-section (1) in respect of property of the nature referred to in sub-section (3) of section 23 shall not exceed the annual value of the property as determined under section 23." 7 Substituted for "five,, by the Finance Act, 1994, w.e.f. 1-4- 1995. ---------------------------------------------------------------------- 1.155
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