Income Tax Act, 1961
Section 4: Subs. by s. 4, ibid., for “one” (w.e.f. 12020).
4. Subs. by s. 4, ibid., for “one” (w.e.f. 12020).
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(b) the annual value of the house or houses, 1[other than the house or houses] in respect of which
the assessee has exercised an option under clause (a), shall be determined under sub-section (1) as if
such house or houses had been let.]
2[(5) Where the property consisting of any building or land appurtenant thereto is held as
stock-in-trade and the property or any part of the property is not let during the whole or any part of the
previous year, the annual value of such property or part of the property, for the period up to 3[two years]
from the end of the financial year in which the certificate of completion of construction of the property is
obtained from the competent authority, shall be taken to be nil.]
4[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 5[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 6[within 7[five years] from the end of the financial year in which capital was borrowed],
the amount of deduction 5[or, as the case may be, the aggregate of the amounts of deduction] under
this clause shall not exceed 8[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:]
9[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.]
5[Provided also that the aggregate of the amounts of deduction under the first and second provisos
shall not exceed two lakh rupees.]
the annual value of the house or houses, 1[other than the house or houses] in respect of which
the assessee has exercised an option under clause
as if
such house or houses had been let.]
2[
Where the property consisting of any building or land appurtenant thereto is held as
stock-in-trade and the property or any part of the property is not let during the whole or any part of the
previous year, the annual value of such property or part of the property, for the period up to 3[two years]
from the end of the financial year in which the certificate of completion of construction of the property is
obtained from the competent authority, shall be taken to be nil.]
4[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 sum equal to thirty per cent. of the annual value;
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
of section 23, the amount of
deduction 5[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 6[within 7[five years] from the end of the financial year in which capital was borrowed],
the amount of deduction 5[or, as the case may be, the aggregate of the amounts of deduction] under
this clause shall not exceed 8[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:]
9[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.]
5[Provided also that the aggregate of the amounts of deduction under the first and second provisos
shall not exceed two lakh rupees.]