Скачать или смотреть Section 24 of the Income Tax Act | Income from House Property | Standard Deductions

There are three possible scenarios wherein income from house property can occur: Housing income by way of rent, the annual value of the property which is considered “deemed to be let out” for income tax purposes; and the annual value of the property which is self-occupied. A standard deduction rate of 30% is applicable on the Net Annual Value of the property. The best part about this deduction is that it is allowed even when the actual expenditure on the property is higher or lower. An important point to remember here is that as the annual value of a self-occupied house is nil, the standard deduction applicable is also nil. As a homeowner, you can claim a deduction up to INR 2 lakh on the interest of your home loan if you are self-occupying the house. You can also claim this deduction if your house is vacant. However, in case you have let out your property, the entire interest on the home loan can be claimed as a deduction. You should remember that an interest certificate is a must for claiming a deduction for the interest payable.