Section 15 - Substitution of new section for section 24

Deductions from house property permit a standard percentage allowance and interest relief subject to capped limits and spread rules.

Section 24 now allows two deductions from income from house property: a standard deduction equal to thirty per cent of the annual value, and deduction of interest payable on capital borrowed for acquisition, construction, repair, renewal or reconstruction of the property. For properties referred to in sub section (2) of section 23 the deduction is capped at thirty thousand rupees, with a higher cap of one lakh fifty thousand rupees where borrowing for acquisition or construction commences on or after 1 April 1999 and completion occurs before 1 April 2003. Pre construction interest is deductible in equal instalments over the year of acquisition and the four succeeding years.