Friends,
While taking into account the loss from House
Property, the DDO shall ensure that the employee files the declaration referred
to above and encloses therewith a computation of such loss from House Property.
Following details shall be obtained and kept by the employer in respect of loss
claimed under the head "Income from house property" separately for
each house property:
(a) Gross annual
rent/value
(b) Municipal Taxes
paid, if any
(c) Deduction
claimed for interest paid, if any
(d) Other deductions
claimed
(e) Address of the
property
(f) Amount of loan,
if any; and
(g) Name and address
of the lender (loan provider)
Conditions for Claim of Deduction of Interest
on Borrowed Capital for Computation of Income From House Property Section
24(b):
Section 24(b) of the Act allows deduction from
income from house property on interest on borrowed capital as under:-
(i) the deduction is
allowed only in case of house property which is owned and in the occupation of
the employee for his own residence. However, if it is not actually occupied by
the employee in view of his place of the employment being at other place, his
residence in that other place should not be in a building belonging to him.
(ii) The quantum of
deduction allowed as per table below:
Sl. No
|
Purpose
of borrowing capital
|
Date of
borrowing capital
|
Maximum
Deduction allowable
|
1
|
Repair
or renewal or reconstruction of the house
|
Any
time
|
Rs.
30,000/-
|
2
|
Acquisition
or construction of the house
|
Before
01.04.1999
|
Rs.
30,000/-
|
3
|
Acquisition
or construction of the house
|
On or
after 01.04.1999
|
Rs.
1,50,000/-
|
In case of Serial No. 3 above
(a) The house so
acquired or constructed should be completed within 3 years from the end of the
FY in which the capital was borrowed. Hence it is necessary for the DDO to have
the completion certificate of the house property against which deduction is
claimed either from the builder or through self-declaration from the employee.
(b) Further any
prior period interest for the FYs up to the FY in which the property was
acquired and constructed shall be deducted in equal installments for the FY in
question and subsequent four FYs.
(c) The employee has
to furnish before the DDO a certificate from the person to whom any interest is
payable on the borrowed capital specifying the amount of interest payable. In
case a new loan is taken to repay the earlier loan, then the certificate should
also show the comprehensive picture of Principal and Interest of the loan so
repaid.
