Business   

Deduction of interest from property income

Please refer to your answer on computation of property income wherein you have referred to the limit for deduction of interest on borrowed capital from income from self-occupied property at Rs. 30,000.

You have not referred to the liberalised deduction of Rs. 1.50 lakh from April 1, 1999, that is, from assessment year 2000-01 onwards. You may like to insert the above correction.

Tax Forum is obliged to Karthik Vaidyanathan of Chennai for pointing out the enhanced deduction allowed from AY 2000-01. But this is subject to conditions. The loan should have been taken on or after April 1, 1999, and the construction should have been completed within three years from the end of the financial year in which the amount was borrowed. If both the conditions are satisfied, deduction of interest paid is enlarged up to Rs. 1.50 lakh per annum as provided in the second proviso to Sec. 24. If not, the deductions under the first proviso up to Rs. 30,000 alone will be allowed.

S. RAJARATNAM

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Knee-jerk reactions behind high market volatility
New social content aggregators
Where Centre can boost insurance
Deduction of interest from property income
Godrej Microsteam launched
Debt relief for spices farmers
Work on Pallivasal Extension Project to start tomorrow
Airtel announces New Year contest
KPFC pays dividend to Government, KSEB
Minister's assurance to CCCI

Copyright © 2006, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu